The law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decision.
If you are a wholesale investor under the definition of that term in clause 3 of Part 1 Schedule 1 of the Financial Markets Conduct Act 2013, the usual rules do not apply to offers of financial products made to you. As a result, you may not receive a complete and balanced set of information.
You will also have fewer other legal protections for these investments. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.
Overview:
Icehouse Ventures have fully subscribed their $100m capital raise for Growth Fund II, a late-stage New Zealand venture capital fund investing in 20 exceptional high growth technology companies.
Growth Fund II is the first Kiwi venture capital fund to attract institutional investment from three Kiwisavers (Generate ($20m), Simplicity ($10m) and Pie Funds ($10m)), and the opportunity now exists for Syndex investors to participate in the final close and oversubscription of the fund.
About Growth Fund II:
Growth Fund II provides wholesale investors with a diversified portfolio of 20 exceptional local technology companies, all with the foundations required to become globally immense (examples from the first Growth Fund include Tracksuit, Hnry, Halter, Crimson and the recently acquired Tradify).
By leveraging Icehouse Ventures’ deep reach into the ecosystem, unparalleled relationships, time-based advantages, and legal rights, Growth Fund II will access the most sought-after and competitive venture investment opportunities in New Zealand. Investments will be made across diverse sectors and business models, and capital will be concentrated over time via successive follow on investments into top performing companies.
Fund investors receive priority co-investment rights, meaning direct investments can be made into preferred companies.
Fund update:
Growth Fund II has been fully subscribed, with $100m committed by 500+ investors, including cornerstone investors Generate Kiwisaver. Simplicity Kiwisaver and Pie Funds. Over-subscriptions are being accepted until Friday, December 13th.
The fund has begun investing, making initial allocations to:
- Halter - a herd management platform, revolutionising pasture optimisation and herd management for dairy/beef farmers across NZ/AU/US via Halter’s “smart-collars”.
- Zincovery – a novel process technology enabling the recovery of green Zinc from steel-industry waste streams, with a low production cost and carbon footprint.
- Timescapes – a hardware enabled AI platform for property developers and general contractors, allowing for deep and real-time worksite insights and analytics.
Key information:
- Fund size: $100m (taking over-subscriptions)
- Cornerstone investors: Generate Kiwisaver ($20m), Simplicity ($10m), Pie Funds ($10m)
- Target portfolio size: 20
- Target: Established and high growth New Zealand technology companies
- Minimum investment: $50k drawn 50% up front, and 25% each successive year
- Management fee: 1% p/a for 10 years (half the industry standard)
- Carried interest: 20% over an 8% annually compounding hurdle
- Target IRR: 25%
- Investment period: 5 years
- Fund Term: 10 years
For interested investors:
To review the fund materials, see here. To be connected with an Icehouse Ventures team-member, please register your interest below.
