21 June 2005
NEW ZEALAND SUPERANNUATION FUND ANNOUNCES ITS FIRST COMMITMENT TO PRIVATE EQUITY
The New Zealand Superannuation Fund today announced it has committed $23.75 million to the new AMP Pencarrow Private
Equity Fund, its first private equity commitment since it began investing in September 2003.
The $75 million AMP Pencarrow Private Equity Fund will invest in local management buyouts and expansion capital
transactions. Other investors include Australian fund of funds investor, Quay Partners, and AMP Life.
In March, the New Zealand Superannuation Fund stated its intention to invest up to $100 million in local private equity
funds, or related transactions, over the next three to five years. It also announced the appointment of specialist
advisory firm, Quentin Ayers, to review investment opportunities in the New Zealand private equity market.
"The decision to invest in the AMP Pencarrow Fund followed a detailed review by Quentin Ayers," said New Zealand
Superannuation Fund chief executive Paul Costello. "The key factor was the manager's track record in this area, which
gives us confidence in their future performance."
The AMP Pencarrow Fund aims to be fully invested within five years, with investment commencing in quarter two of
2005/2006.
The value of the New Zealand Superannuation Fund as at 31 May 2005 was $6.4 billion.
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Notes for Editors:
About the New Zealand Superannuation Fund:
The New Zealand Superannuation Fund, which commenced investing at the end of September 2003, is designed to partially
provide for the future cost of New Zealand superannuation. As at 31 May 2005 the value of the Fund was $6.4 billion. The
Fund is expected to grow to around $100 billion by 2020. www.nzsuperfund.co.nz
About AMP Pencarrow Private Equity Fund:
Pencarrow Private Equity is a specialist private equity manager established in 1993. In 1998 AMP Capital and Pencarrow
established a joint venture arrangement and since that time have invested $150 million in MBO and expansion capital
transactions.
AMP Capital and Pencarrow have considerable experience in such transactions having previously invested in a diverse
range of businesses including Hurricane Wire Products, Eskimo Logistics Group, Formway, Donaghys and Wellington Drive
Technologies. More recently they partnered with Methven senior management in an MBO of the shower ware manufacturer and
in late 2004 floated the company on the NZX.
AMP Capital is one of New Zealand's largest private equity investors. Over the last six years, in partnership with
Pencarrow, they have made 20 private equity investments totaling $150 million in local companies. AMP Capital is New
Zealand's largest fund manager, with assets of over $10 billion.
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