New investment class arrives

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Want to invest in schools, prisons, roads and others social infrastructure? Well now you have the chance.

Tuesday, March 16th 2010, 7:22AM 2 Comments

The New Zealand Social Infrastructure Fund (NZSIF) is looking to raise up to $125 million to invest in the development of social infrastructure assets through Public-Private Partnerships (PPP).  

NZSIF has been set up by a subsidiary of investment bank Morrison & Co and Craigs Investment Partners.

NZSIF will be a Limited Partner in the Public Infrastructure Partners LP, an investment fund managed by Morrison & Co. It will invest alongside the New Zealand Superannuation Fund and other institutional investors.

PIP Fund managing director Peter Coman said the PIP Fund which will be a catalyst to accelerate the development of crucial social infrastructure, stimulate high value economic activity and kick-start a new investment sector in this country.

"Social infrastructure PPPs are a proven model internationally. Having high-quality private investors focused on providing excellent facilities means that Government agencies can focus on delivering excellent social services."

Craigs Investment Partners executive chairman Neil Craig says that long term contracts with Government counterparties, and revenues that are based on asset availability and linked with inflation are characteristics of social infrastructure PPPs.

NZSIF gives retail investors with a longer term investment horizon exposure to a new asset class in their portfolios, on substantially similar terms to institutional investors in the PIP Fund", Craig said.

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