Pie Funds has announced a landmark partnership with Altered Capital, marking the first time a KiwiSaver provider has invested in the New Zealand venture capital firm. This strategic move will allocate between 2-4% of the Pie KiwiSaver Scheme Aggressive Fund to a portfolio of high-growth local technology companies. The collaboration provides retail investors with access to opportunities previously reserved for wholesale and institutional participants, signaling a significant shift in the accessibility of venture capital.
A Strategic Allocation to Local Innovation
The investment provides members of Pie's Aggressive Fund with exposure to a concentrated portfolio of promising private New Zealand technology firms. This initiative democratizes access to venture capital, an asset class known for high growth potential but typically out of reach for average savers. The allocation underscores a trend of KiwiSaver schemes diversifying into alternative assets to enhance long-term returns for their members and support the local economy.
Altered Capital focuses its strategy on backing exceptional founders who have already achieved product-market fit and are prepared for significant expansion. The firm employs a dual approach, combining deep local support with global venture expertise to help these companies scale effectively. This model is designed to unlock the full potential of New Zealand's most ambitious innovators on the world stage, fostering sustainable growth and international competitiveness.
Proven Track Record and Synergistic Leadership
Altered Capital brings a history of successful investments, bolstering confidence in the partnership's potential for generating strong returns. Its portfolio includes notable successes such as global education technology company Crimson Education and supply chain verification specialist Oritain. These examples showcase the firm's capability in identifying and supporting businesses that achieve significant global impact from a New Zealand base.
To ensure strong governance and strategic alignment, Pie Funds' founder and CIO, Mike Taylor, will join Altered Capital’s Advisory Committee. This committee plays a crucial role in overseeing the fund's direction and ensuring the interests of investors are prioritized. Taylor's inclusion will bring valuable market insight and strengthen the collaborative foundation of the partnership, benefiting both organizations and their stakeholders.
Executive Perspectives on Unlocking Potential
Ana-Marie Lockyer, CEO of Pie Funds, stated that the partnership reinforces their commitment to supporting ambitious New Zealand founders. She emphasized that it provides KiwiSaver members with valuable access to high-growth opportunities not typically available to the public. Lockyer noted Altered Capital's philosophy aligns perfectly with Pie's own boutique, high-conviction investment approach, creating a natural synergy between the two firms.
McGregor Fea, Managing Partner at Altered Capital, echoed this sentiment, highlighting a shared belief in backing founders to build globally competitive companies. He expressed admiration for the Pie Funds team and noted their involvement validates the mission to scale promising New Zealand ideas. Fea welcomed Mike Taylor's expertise to the advisory committee as they embark on this next chapter of mutual growth and success.
Broadening Access to Venture Capital
This new investment builds upon Pie Funds' existing exposure to the nation's start-up ecosystem, further diversifying its members' portfolios. The fund manager already allocates capital to early-stage companies through its Growth Fund's investment in Icehouse Ventures. The Altered Capital partnership represents a significant expansion of this strategy, broadening access to innovation for more members across different fund profiles.
This alliance between Pie Funds and Altered Capital represents a significant development for New Zealand's investment landscape. It not only opens a new frontier for KiwiSaver members seeking higher growth but also injects vital capital into the local technology sector. The partnership signals a maturing market where retail investment schemes are playing a more active and crucial role in fostering home-grown innovation.