Super Fund invests more in NZ, via new Direct Capital fund

Super Fund chief executive Adrian Orr.

The New Zealand Superannuation Fund is investing $50 million in Direct Capital IV Fund, which will invest in New Zealand companies.

NZ Super Fund, which had total assets of $11.6 billion at March 31, will be a cornerstone investor in the Direct Capital IV Fund, which is the fourth private equity fund to be raised by Direct Capital.

The new fund will invest in mid-sized private New Zealand companies.

About 18 per cent of NZ Super Fund's assets are currently invested here, but the National Party said last year it would direct the fund to have at least 40 per cent of its assets in New Zealand.

Government contributions to the fund are also an issue in this year's Budget.

Adrian Orr, chief executive of the Guardians of NZ Super Fund, said the guardians had been seeking high-quality opportunities to invest in, in New Zealand.

Direct Capital IV will be investing over the next five years and the Guardians' commitment will be drawn down over that period.

NZ Super Fund is already an investor in the Direct Capital III Fund and the AMP-Pencarrow Private Equity Fund, which has a similar mandate.

The NZ Super Fund is designed to partially provide for the future cost of New Zealand superannuation.

The Government allocates on average $2b a year to NZ Super Fund.

- NZPA