Fisher Funds wants to expand into private equity to deliver higher returns and to inject more cash back into the economy. File picture. Photo: 123RF
Investment manager Fisher Funds is setting up a New Zealand private equity business to target a broad range of local unlisted companies.
It was already a leading KiwiSaver provider and wanted to expand into private equity to deliver higher returns while putting money back into the economy.
Fisher Funds chief investment officer Ashley Gardyne said they were responding to keen client interest over the past four years to explore private equity.
He estimated there were 1000 private New Zealand companies that "if they were listed would be worth between $20m-$100m each,".
"There are a lot of successful New Zealand businesses that most people haven't heard of," Gardyne said.
"The team's job will be to scour the country to try and find some of these companies across a wide range of sectors to capitalise on their growth."
Fisher Funds would be looking to acquire companies with a strong and sustainable growth model, he said, while taking care to to avoid cyclical industries "like construction for example."
Gardyne said their new fund would receive capital from both Fisher's individual clients and its KiwiSaver scheme.
"Globally we've seen this trend towards private equity for a few decades now because it does provide potentially higher returns and diversification as well," he said.
"As KiwiSaver is growing and as our client base is growing we are getting increasing requests from clients for this."
Fisher Funds acquired Kiwi Wealth's KiwiSaver two years ago.
And coming across to lead the private equity team at Fisher Funds is Michael Walmsley from Jarden's investment business.
Earlier this year, Michael and his team at Jarden advised Fisher Funds on its investment in Lodestone Energy - New Zealand's largest utility scale solar operator, said Gardyne.