Funds
Movac currently operates one formal fund – creatively named Fund 2 – and is exploring the potential to raise a new fund – creatively named Fund 3! Fund 1 refers to the first pool of investments that we made dating back to 1998.
Fund 2 – actively investing
Fund 2 is a $12.5 million closed fund that focuses on early stage investment opportunities. We have committed approximately NZ$10 million of this fund to young New Zealand companies, so we’ve got about NZ$2.5 million left to go. Our typical deal size in this Fund ranges from $250k to $1 million. We commit more in subsequent rounds and actively syndicate deals with other investors.
Fund 3 – seeking investor interest
Fund 3 is a high growth fund that will build a portfolio of equity investments in unlisted companies spanning the late start-up stage (pre-profit, early revenue) through to expansion stage funding (profitable businesses in need of expansion). The Fund will target aspirational businesses, backed by exceptional teams with strong foundations for significant growth. We’d like to make this fund as big as possible but plan to kick it off if we get initial interest for NZ$25 million from certain qualified investors (see below). We’re over half way there and in the process of seeking preliminary indications of interest from a wider group of qualified investors. Any indication of interest we receive at this stage involves absolutely no obligation or commitment of any kind.
For the record, no money is currently being sought and no applications or money for securities will be accepted or received under or in connection with Fund 3 at this stage. If any offer of securities in Fund 3 is made in the future it will be compliant with the Securities Act 1978 (“the Act”). Also, this is not authorised advertisement under the Act.
Who’s eligible to invest
In the event that we go ahead with Fund 3 it will only be open to certain investors for the purposes of the Act. Without going into the vagaries of the Act these are essentially people who meet one of the following tests:
- People who commit $500,000 or more;
- People who have net assets of at least NZ$2 million or annual gross income in excess of NZ$200,000 (for the last 2 financial years);
- People who are relatives or close business associates of Movac or its partners; or
- People whose principal business is the investment of money or who, in the course of and for the purposes of business, habitually invest money.
If you think you’re likely to satisfy this test and would like to learn more, please contact Movac Fund 3 Partner, Mark Vivian.
