By ROB O'NEILL
Part of what Pacific Lithium's chief technical officer, Dr Paul Pickering, describes as the company's unique business model is its related company called Phoenix Management.
In fact, it could be the most important venture company New Zealand has never heard of. Apart from raising around $15 million for Pacific Lithium and funds for wind turbine developerVortec Energy, within the next week it will announce "significant investments" in a pharmaceutical company and a Christchurch-based electronics firm.
Managing director Robin Johannink said it had raised around $50 million so far, possibly more than any other local venture company.
"Phoenix Management is basically a venture management company as opposed to a venture capital company," said Mr Johannink. "We only take on ventures where we can add significant management input."
Phoenix Management takes an equity position in return for management services, which Mr Johannink says are provided at cost, and for funding.
"We put our cash in first, sort out the structure, then we invite our investors in as first-tier investors."
Only companies that can be taken to a public listing are of interest.
Pacific Lithium would go onto the Nasdaq in September, Mr Johannink said. Vortec Energy is expected to list in June or July next year on the European market. The pharmaceutical company is expected to list on the Nasdaq in 2001 as well.
The electronics venture is an early stage investment and three more investments are "waiting in the wings."
The pharmaceutical company involves a $4 million investment from Phoenix Management and its partners.
"It's very, very significant," said Mr Johannink. "We've had to tie in a group of companies from all around the world and roll them into one structure."
The only investment not considered is information technology. Mr Johannink said that was not where Phoenix Management's expertise lay.
"Our expertise is in what we call 'touch' technologies," he said. "We have material science, mechanical and electrical expertise."
Offshoot ventures into new products
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