The KiwiSaver default manager becomes the country’s largest KiwiSaver venture capital investor, lifting the fund past $180 million.

Simplicity has committed $50 million to Icehouse Ventures’ Growth Fund III, making it the largest KiwiSaver venture capital investor in New Zealand.

The commitment takes the fund to more than $180 million, ahead of the $150 million target set when it opened less than six months ago. Strong demand could see Icehouse Ventures bring forward the end-of-year final close, although the fund remains open to investors.

Growth Fund III will invest in 20 late-stage, high-growth New Zealand companies. Its first three investments are Halter, Calocurb and Supabase.

Simplicity co-founder and managing director Sam Stubbs says the commitment is “an endorsement of how good investing in Kiwi startups via Icehouse Ventures has been for our members, and a sign of confidence in the New Zealand economy”.

Simplicity has now committed $85m across four Icehouse Ventures funds since 2019. Stubbs says other KiwiSaver managers are starting to follow its lead, “but more should get involved because the results speak for themselves”.

KiwiSaver providers have now committed at least $190 million through Icehouse Ventures and its portfolio companies, up from $60m at the close of Growth Fund II in 2024. Generate has invested $40 million across Growth Funds I and II, while Pie Funds put $10m into Growth Fund II and intends to invest in Growth Fund III.

Icehouse Ventures chief executive Robbie Paul says the investment is “a vote of confidence, both in the companies we are backing and in the opportunity that now exists for New Zealand investors”.

Paul says it means hundreds of thousands of New Zealanders can share in the growth of private companies that are otherwise largely out of reach. “Success for us is that a greater percentage of New Zealand’s leading companies is owned by Kiwis.”

The investment comes as KiwiSaver becomes an election issue, with parties signalling support for higher contribution rates. Australian super funds invest around 16% of their assets in private markets, compared with 2-3% for KiwiSaver, Paul says.

“A bigger KiwiSaver pool gives more New Zealanders the chance to participate in the growth of our best companies, while giving those companies access to more long-term capital from home.”