August 24, 2016

New Zealand-based Oriens Capital has raised $30 million for its first regional fund prior to its first scheduled close on September 1.

The fund, which is based out of the Bay of Plenty, has a target corpus of $60 million and will focus on investing in uniquely New Zealand-based privately owned businesses valued between $10 million and $50 million in the agtech, food manufacturing and processing, distribution, science, technology, and logistics sectors.

“We see that there’s a lack of capital in this space and there’s plenty of exciting business opportunities and export opportunities in the space we’re targeting,” said Chief Executive Officer James Beale on the company’s website.

Investors in the fund include BOP Regional Council investment arm Quayside Holdings, Tauranga Energy Consumer Trust, and Sir Stephen Tindall’s K1W1 fund, along with a diverse selection of regional Kiwi investment vehicles and organizations.

“The combination of best practice fund structure, the investor and manager alignment, and a team with great experience in fund management governance and investment execution, were all factors in attracting the high calibre [sic] of investors on our register,” said chairman Mr. John McDonald.

Strategy-wise, the fund will take a partnership approach with its portfolio businesses. “Utilising [sic] our strong regional networks and the skill base of our team, we can provide businesses with access to scarce growth capital and also facilitate ownership succession for private businesses,” said Beale in a company statement.

The fund aims to invest in between five and seven promising businesses that, most importantly, have “great management teams” and are already well positioned, but are maybe looking to establish new ownership or engage a succession plan.

“As well as providing a financial return for our investors, the Fund will enable expansion and investment to be funded regionally, and create opportunities for additional jobs and growth,” said Neil Craig, the founder and chairman of national broking firm Craigs Investment Partners, and a Director of Oriens Capital.

New Zealand has been gaining attention as a regional destination for alternative investment. Only two months ago Australian fund manager, Laguna Bay had its first close of A$280 million ($208 million) from North American investors toward a targeted A$1 billion corpus for its Australian and New Zealand Agricultural Fund.

Unlike Oriens Capital, Laguna’s Australian and New Zealand Agricultural Fund will include farmland, particularly those with an integrated level of sustainability. The fund’s farming assets will have a wide spread across crops, geography and water resources in order to reduce risk, with investments made into farms or clusters of farms involved in horticulture, beef, lamb, and grain production that carry a value of $25 million each or higher.

—

Lynda Kiernan