For Investors

Punakaiki Fund makes long term investments into high growth New Zealand Companies. It holds minority positions in 18 companies.

 

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The total assets, including cash, were valued at $20.3 million for the November 2, 2016 Product Disclosure Statement (PDS). The Net Asset Value (NAV), after all liabilities including long term contingent liabilities for Performance Fees, was $18.9 million. The PDS has a price per Share of $19.00, up from $10.00 paid by investors in April 2014.

Portfolio Statistics

The investments represent a diverse range of products and services, target markets, business models and sizes. The aggregate last-quarter (September 2016) revenues for all companies annualised to over $69 million. The equity-weighted revenues totalled $9.6 million, and while only a third of the companies were profitable the companies show a last quarter aggregate equity-weighted profit.

 

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The charts below reflect the investments in the 18 companies, as valued for the PDS on October 18, 2016. They show percentages of total investment value, excluding cash.

The largest holding represents less than 15% of the investment value. The three largest holdings represent 40% of total investments value.

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While 58% of the fund’s investment value is with companies that are unprofitable, most of these have enough funds to get to cash-flow positive. We estimated that over 94% of the assets of the fund are placed with companies that do not need further funding to be sustainable.

Unusually for a growth investor, 42% of the asset value is placed with companies that are profitable or near-profitable.

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The asset value is spread across a range of company sizes, with 45% of the value from companies with over $10 million in revenues.

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Punakaiki Fund holds a range of investment stakes.

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Managers Lance Wiggs or Chris Humphreys are directors for 12 of the 18 companies. The fund does not insist on directorships, and we expect that these will vary over time as founders’ needs evolve.

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The breadth of industries (and sizes, stages and stakes) is deliberate, designed for the fund to exhibit more resilience in the face of market shocks in one sector.

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Fund Raising

Punakaiki Fund launched as a private fund in April 2014, raising $12.830 million to date, including issuing new shares for one transaction. These fund raising events ere for wholesale investors only, unless noted, and included: