Super fund invests $100m with Pioneer Capital

Apple grower Rockit Global has benefited from investment from Pioneer Capital. Photo / Warren Buckland

Fast-growing Kiwi businesses with plans to expand internationally are set to benefit from another investment allocation from the New Zealand Superannuation Fund.

The $53 billion fund, which was set up to help cover the future cost of paying for New Zealand Superannuation, has allocated up to $100 million to investment manager Pioneer Capital.

Pioneer, an Auckland based firm, will use the money to invest in New Zealand businesses seeking international growth in high-margin sectors.

Del Hart, head of external investments and partnerships at NZ Super, said high growth, mid-sized companies were an important part of its diversified investment approach.

"We look forward to seeing this money put to work by innovative New Zealand businesses with the ambition and capability to succeed offshore."

The fund has $7b invested in New Zealand with $600m of that invested or committed to investment in high-growth companies through third-party fund managers.

It is the third time NZ Super has invested via Pioneer Capital with two prior commitments made in 2013 and 2016.

The $100m investment will be the cornerstone investment for Pioneer's fourth fund - Pioneer Capital Partners IV - which is expected to raise around $260m in total.

Randal Barrett, managing director of Pioneer Capital. Photo / Richard Robinson.

Randal Barrett, managing director Pioneer Capital, said New Zealand had a wealth of exciting businesses looking to secure funding to grow and it was positive to have large-scale investor backing.

"Pioneer has built a deep relationship-based pipeline of opportunities in this space. We focus on companies which are high-growth, internationally-focused, and will benefit from the expertise and networks that we are able to provide."

Pioneer has previously invested in Kiwi businesses including pet food maker Natural Pet Food Group, buy-now-pay-later company Laybuy and apple grower Rockit Global.