Wellington-based venture capital firm Movac has raised $NZ30 million ($26.5 million) for a new secondary fund that will invest in technology companies that have reached growth stage.
The new fund, the first secondary venture fund in New Zealand, will purchase shares from early-stage investors, former employees and founders.
Movac general partner Mark Vivian said investments would be made in companies that have demonstrated strong growth and achieved profitability.
Movac Growth Opportunity Fund 1 will be the 8th fund raised by the firm that led a $NZ142 million investment round in online sales platform Trade Me in 2006 not long before the company was acquired by Fairfax Media for $NZ750 million. Trade Me has been an investee of global investment firm Apax Partners since 2019.
Vivian said the fundraising target for Growth Opportunity Fund 1 had been $NZ30 million and with that reached, over-subscriptions will be taken up to a total fund size of $50 million, or a final close will be declared on 30 November.
The fund is open to wholesale investors at a minimum commitment of $NZ50,000, with commitments to be called over about two years. Wealth managers JB Were New Zealand, Forsyth Barr Limited and Craigs Investment Partners are channeling investment into the fund.
Vivian said Movac funds have been consistently top decile or top quartile performers to date, based on cash returned to investors.
Image: Movac general partner Mark Vivian.