Zealandia is a newly established fund manager with the aspiration of establishing multiple funds over time which enable, accelerate and improve infrastructure delivery in New Zealand. Zealandia is owned collectively by Accident Compensation Corporation (ACC), leading infrastructure advisory firm Mafic Partners, CEO, Scott Priestley and Duncan Olde (Managing Partner of Mafic Partners).

Zealandia has launched its capital raise for Fund I and an iwi sidecar (Te Aka Haumi) which will invest in public private partnerships (PPPs) in New Zealand. Te Aka Haumi will invest alongside Fund I in all projects other than those related to the corrections sector.

ACC has committed $300 million to Fund I, which is targeting raising $450 million from New Zealand long-term wholesale investors (with the ability to increase the fund size to $600 million).

Fund I and Te Aka Haumi provides wholesale New Zealand investors (including iwi, Kiwisaver and community trusts) with access to long-term investments that support the delivery of critical infrastructure across the country.

The nation faces a significant challenge in the coming years with the New Zealand Infrastructure Commission estimating the country has an infrastructure deficit of around $210 billion, with total investment needs potentially reaching $1 trillion over the next 30 years.

Public private partnerships (PPP) are seen as an important part of the solution, allowing government to accelerate the delivery of essential infrastructure while drawing on private sector capital and expertise.

Zealandia has been established to support New Zealand investors to invest in local infrastructure thereby growing New Zealand's prosperity while receiving long-term inflation linked returns.

Scott Priestley, CEO of Zealandia, said the funds will give New Zealand investors a way to put private capital to work while delivering essential public infrastructure.

"PPPs generate stable, long-term cash flows that are typically inflation-linked and supported by government agencies," said Priestley.

"They have a strong track record of delivering consistent returns while helping to build the infrastructure New Zealand needs."

Fund I has an initial five-year investment period and an indefinite term, reflecting the long-dated nature of PPP concessions. The fund will target pre-tax project returns of 9-12 percent (reflective of project risks) and has already secured three PPP investments:

- 40.0% stake in Wellington Gateway Partnership (Transmission Gully)

- 23.4% stake in NX2 (Pūhoi to Warkworth)

- 24.9% stake in SecureFuture (Auckland South Corrections Facility)

It is also supporting a consortium bidding for the Christchurch Men's Prison PPP.

The team behind Zealandia brings direct experience originating, securing and managing infrastructure investments in New Zealand. Through Mafic Partners and ACC's long-standing involvement in the sector, the team has played a significant role in many of the country's PPPs, giving the fund established relationships with government agencies, delivery partners and co-investors.

Priestley has a decade and a half of experience in the infrastructure sector in New Zealand and has worked on seven of the ten NZ PPPs to date. He joined Zealandia from Mafic Partners.

"ACC has been investing in New Zealand PPPs since the market began. By launching Zealandia with Mafic, we're opening the door for other long-term New Zealand investors to access this sector," Priestley said.

"This approach allows us to partner with government to deliver critical infrastructure, while keeping both ownership and returns anchored in New Zealand."

ACC is one of New Zealand's largest infrastructure investors, managing more than $50 billion in assets. It has years of experience investing in New Zealand PPPs and has built significant stakes in some of the country's key infrastructure projects.

Mafic is a leading New Zealand infrastructure advisory firm that partners with clients to deliver innovative commercial and financing solutions for infrastructure businesses and transactions. Mafic has well-established, long-standing relationships with key stakeholders and contractors in the New Zealand infrastructure sector which has enabled it to be a key party in driving PPP consortia formation.

Zealandia will invest exclusively in New Zealand-based PPP and PPP-like projects with government or tax-backed revenue streams.

Zealandia Fund I is open to New Zealand wholesale investors, with a minimum commitment of $5 million (or $1 million for iwi investors).

ENDS

About Zealandia:

Zealandia is a newly established New Zealand-based infrastructure investment manager with ACC, Mafic Partners and Scott Priestley as shareholders. Zealandia Fund I provides wholesale New Zealand investors with access to public private partnerships (PPPs) and PPP-like projects investments. The fund focuses on social infrastructure and aims to deliver attractive returns while supporting the development of critical infrastructure across New Zealand.