Silver Lake: New Zealand Rugby board approves landmark capital raise

The decision will see Silver Lake’s interest in NZR Commercial surge from 5.71 per cent to 7.5 per cent. Photo / Photosport

The New Zealand Rugby (NZR) board, in collaboration with the New Zealand Māori Rugby Board and 26 Provincial Unions, has given the green light to a $62.5 million capital raise through the existing Silver Lake underwrite.

This strategic decision will see Silver Lake’s interest in NZR Commercial surge from 5.71 per cent to 7.5 per cent.

NZR will conclude the capital raise process which has already seen investment provided to NZR Commercial and stakeholders, including over 450 community rugby clubs, and the rebuilding of NZR reserves post-COVID-19.

Raising the $62.5 million and the establishment of a Legacy Fund with a committed capital contribution of $60m were the final two outstanding elements of the transaction which had been approved by NZR’s voting members in June 2022.

The $60 million Legacy Fund was agreed to be established as an endowment fund for rugby, to further grow and develop the game from the grassroots up. The Fund will support annual grants for a range of community rugby initiatives.

NZR investigated alternative options to raise the $62.5 million, including approaching New Zealand institutional investors. After evaluation of market conditions and support from external expertise, the board recommended the previously agreed Silver Lake underwrite provided certainty. It allowed the completion of the commitments approved by the members last year.

The partnership with Silver Lake continues to be supported by NZR and the voting members, with early successes including the establishment of a new board, appointment of an NZR Commercial chief executive, expansion of the relationship with Adidas and the launch of NZR+.

NZR will retain 92.5 per cent of the equity in NZRC after the Silver Lake underwrite has been exercised.