Deane heads up fund's advisory board

By Yoke Har Lee

Former Telecom NZ chief executive Dr Roderick Deane will head an investment advisory board for the New Zealand Seed Fund, the latest attempt to pool seed money for biotech and high-tech ventures.

Also on the board is Peter Menzies, chairman of Auckland UniServices, which is promoter for the fund that aims to raise $30 million initially and $50 million at the close.

Dr John Kernohan, chief executive of UniServices, said Mr Menzies had been appointed by one of the fund's investors.

Jerry Balter, founder of Ulysses Group, the US investment company managing the fund, said the 14-year seed fund would be invested over 12 to 15 projects and the money would be committed within the first four years of the fund's final closing.

Half the fund would be invested in research coming out of Auckland University but if short of commercially viable projects, a higher percentage of the fund might be invested in non-university projects.

Ulysses' management fee is 3 per cent of the total amount raised. It will also have a final 20c share in each dollar of distributable profit available on a project's completion or liquidation.

Ulysses provides advice on mergers and acquisitions, strategic advice and help in raising capital primarily for healthcare and medical companies.

Another recently established fund, No 8 Ventures, was promoted by Wellington-based Morel & Co.