Silver Lake increses stake in New Zealand Rugby's commerical activities. Photo: Miguel Medina / AFP
US equity firm Silver Lake is to take a greater stake New Zealand Rugby's revenue generating company.
Last year New Zealand Rugby (NZR) approved a $200 million deal, whereby Silver Lake took a 5.71 percent stake in Commercial Co which controls the organisation's revenue generating assets.
The deal means Silver Lake will now underwrite the raising of a further $62.5 million, with its share Commercial Co rising by almost 1.8 percent to 7.5 percent.
Initially New Zealand Rugby said it would offer equity worth as much as $100m to domestic institutional investors, with the bulk of that money being used to establish a Legacy Fund to support annual grants for a range of community rugby initiatives.
As a back up it approved Silver Lake could take up to just over 8.5 percent of the company, if that public offering didn't proceed.
In a statement NZR said after careful evaluation of market conditions it's decided against public investment and gone with the Silver Lake underwrite as it provides certainty.
The deal means NZR now has a 92.5 percent stake in its commerical company.
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 agreement to proceed this week comes after consultation between NZR, the 26 Provincial Unions, the New Zealand Māori Rugby Board and the New Zealand Rugby Players Association (NZRPA).