The New Zealand Super Fund has marked its 20-year relationship with private equity investment manager Direct Capital with a commitment to invest $50 million in its latest fund, Direct Capital VII LP (DCVII).
This commitment will take the Super Fund’s total exposure to Direct Capital (including undrawn commitments) to just over $330 million, equivalent to some four percent of the Super Fund’s net asset value.
Direct Capital is New Zealand’s largest Private Capital investor. Over more than 30 years, Direct Capital has raised over $2.2 billion to invest in successful private companies.
DCVII was raised during November and December 2024, raising $525m to invest in medium-sized New Zealand and Australian businesses looking for capital to fund growth or to support a change in ownership.
The Super Fund’s Head of External Investments and Partnerships, Del Hart, said Direct Capital had a strong track record of financial performance and a well-deserved reputation for creating value in its investee companies.
“Direct Capital gives us a way to invest in local businesses that helps those companies to grow and develop, generates good returns for our portfolio, and contributes to New Zealand’s GDP.”
At the end of the 2024 financial year, the Super Fund had $8.4 billion invested in New Zealand assets, some 11 percent of its total investments by value.
This included a 42 percent stake in Kaingaroa Timberlands, the Super Fund’s largest single investment, significant investments in agriculture and horticulture, as well as shareholdings in NZX-listed companies through various mandates and in private companies via funds such as those managed by Direct Capital.
