Punakaiki Fund (PFL) is a venture capital investment company with a diverse portfolio of investments in private New Zealand technology companies. We invest for the long-term, aiming to build our portfolio of investments in companies that are revenue generating, possess unique competitive edges, and have the potential to dominate a global niche. Our portfolio is diversified across company size, industry sector and business models.

Shareholders buy ordinary shares in PFL and gain immediate exposure to the fund’s diversified portfolio. Unlike a traditional limited‑partnership structured venture capital fund with a fixed life and capital calls, PFL is evergreen, which means there is no set end date and no capital calls.

Our evergreen structure also means we don’t operate under the pressure of having to exit our investments to meet previously set timeframe expectations. Instead, we have the flexibility to continuously raise capital and invest, hold assets for longer to maximise their value, reinvest returns and distribute some of the proceeds to shareholders along the way.

PFL’s business model is designed to generate premium returns by investing and growing privately held New Zealand technology companies.

PFL is managed by 2040 Ventures under a Management Agreement. The Board provides independent oversight and approves key decisions such as distributions.

• Manager (2040 Ventures): Punakaiki Fund has appointed 2040 Ventures Limited to be the manager of Punakaiki Fund. 2040 Ventures is responsible for selecting and managing investments, fundraising, supporting portfolio companies, reporting performance, and ensuring compliance to the various policies, objectives and directives set by the Board.
• Board of Directors: The Board’s core responsibility is governance and oversight. The Board monitors capital allocation and approves distributions, as well as monitoring adherence to various fund policies and regulatory obligations. View PFL’s governance and policy documents.
• The Board also negotiates the Management Agreement with 2040 Ventures and holds the Manager accountable for PFL’s performance. This involves monitoring and valuing PFL’s investment portfolio and ensuring that PFL’s expenditure is prudent and appropriate. See our Board.

PFL invests in a diversified portfolio of New Zealand technology companies. View our current portfolio here.

How we invest is governed by our Statement of Investment Policies and Objectives (SIPO) and Socially Responsible Investing (SRI) policy. The SIPO sets out the fund’s investment mandate and limits and the SRI policy guides responsible investment (e.g., exclusions and environmental, social and governance considerations).

You can view PFL’s policies and governing documents on our Key Documents page.

Fees are paid directly by PFL (i.e., they are not charged to individual investors directly) and are reflected in PFL’s assessed share price. Shareholders can see the accrued fees accounted for in the difference between the fund’s Asset Value vs Net Asset Value which is reported in our monthly Net Asset Value reports. The Net Asset Value is the value of the fund net of any accrued performance fees and any other accrued liabilities or adjustments from the Asset Value.

• Management fee: 1.5% of PFL’s Net Asset Value +$250,000 per annum
• Performance fee (carry): 20% of gains above a 10% IRR total return threshold.

Once a performance fee is earned, the starting point resets. The fund must then grow by more than 10% again before another performance fee can be earned. This is often called a high-water mark.

In simple terms, the Manager only earns a performance fee when the fund has delivered strong overall growth.

Even when a performance fee is earned, it is not all confirmed straight away.

Instead:

• 1/3 is confirmed immediately

• 1/3 is only kept if the fund has a positive return over the next year

• 1/3 is only kept if the fund has a positive return over the next two years

If performance drops below 0% during those periods, the unpaid portions are lost. In simple terms, the Manager only keeps the full fee if performance is sustained.