Venture capital attracts another KiwiSaver

The investment will go towards Movac’s Growth 6, a later-stage VC fund for private Kiwi tech companies needing to grow.With $3.5 billion in KiwiSaver funds under management, this first foray into VC will form a small part of Generate’s Australasian equity allocation, with exposure across all of its KiwiSaver funds except the defensive fund.

Sam Goldwater, Generate’s lead portfolio manager and executive director, says the move looks beyond the current volatile economic cycle. “VC is a long term investment and Movac will invest the funds over the next few years. Our long term strategy involves investing a small portion of our funds in Kiwi venture capital, in particular innovative Kiwi tech companies.New Zealand is producing some incredible technology companies, we want our members to be part of that and help fund NZ Inc. I wouldn’t surprise us to see other KiwiSaver funds make similar investments.”

Movac Partner Mark Vivian says Growth 6 has attracted more than $100 million in the past ten weeks including $70m from NZ SuperFund (it’s third with Movac) and $20 million from Annuitas, which manages the Government Super Fund and National Provident Fund.

“As KiwiSaver schemes grow they’re looking for more or higher return asset classes to invest in. Private company investment in VC can be a pretty good investment over four to ten years plus. We see about 300 investment opportunities a year, by and large in New Zealand or if not they have a New Zealand connection.