NZ Super extends Movac relationship with $35m investment

The NZ Super Fund is extending its decade-long partnership with Movac by injecting $35 million in its latest capital raise for Movac's Growth Fund 7 (MGF7).

MGF7 has raised $185 million at first close, almost doubling its initial target of $100 million as the firm expects it to hit the $200 million fund cap next month, NZ Super said.

Movac partner Mark Vivian said the strong support demonstrated investor confidence in Movac's investment approach, and reflected the considerable opportunities presented by New Zealand's maturing technology sector.

"A sincere 'thank you' to those investors who are investing, both new and existing Movac investors," Vivian noted on LinkedIn announcing the first close of the fund.

"Long term investor relationships are very important to us, and NZ Super has been a cornerstone of Movac growth funds for the past decade. NZ Super has consistently been one of the top performing sovereign wealth funds globally, and we're fortunate and grateful to be the only NZ VC to have them as an investor.

"We have our first Growth Fund 7 investment locked in and look forward to announcing details when we're able to."

Meanwhile, Guardians of NZ Super acting director of private equity Rishab Sethi said the two organisations had built a "close and highly effective" working relationship.

"We're always looking for commercially attractive opportunities to invest in New Zealand," Sethi said.

"For the past 10 years, Movac's growth funds have given us a way to support local companies when they need that support the most, to contribute to New Zealand's burgeoning tech sector, and to generate positive returns for the super fund.

"We're very pleased to further develop our partnership with them."

The super fund maintains a "strong bias" towards its home market, with some 11% of its portfolio invested in New Zealand assets, including more than $500 million in private companies via external managers such as Movac.