Investment Purpose

Purpose

Tupu Tonu has two primary objectives:

  1. to acquire a portfolio of commercial assets that the Crown can offer to ngā hapū o Ngāpuhi as part of the commercial redress package; and

  2. to grow the value of Tupu Tonu.

Tupu Tonu was funded with $150 million of capital from the Crown to invest to achieve these objectives.

Nature of the Fund

Tupu Tonu is a commercial fund, whose objective to build a portfolio of commercial assets, as opposed to provide grants or business support.

 

Tupu Tonu is a direct investment fund, meaning it primarily invests directly in tangible assets and businesses via equity, as opposed to an indirect approach (i.e., financial assets, such as a diversified portfolio of managed funds, listed equities, or listed debt securities).

 

Tupu Tonu has an intergenerational outlook, investing for the long-term.

 

Given the purpose of Tupu Tonu is acquire a portfolio of assets that the Crown can offer to to ngā hapū o Ngāpuhi, Tupu Tonu looks to reflect the long-term aspirations of Ngāpuhi into its overarching investment strategy where possible.

Gradient

Investment Model

Tupu Tonu is interested in both co-investment models such as partnering, and full ownership where it has the capability and capacity to manage the investment appropriately.

 

Tupu Tonu recognises the varied and unique skillsets that Northlander’s possess and where practical would look to leverage these through appropriate models. Predominantly, Tupu Tonu will invest using equity (as opposed to lending or providing grants).

 

Tupu Tonu will seek protections and shareholder rights commensurate with its ownership interest, for example directorships or reserved matters. As a Schedule 4A company, Tupu Tonu is not subject to income tax.

Initial investment screening criteria

Geographic focus

Tupu Tonu is initially looking to invest its capital in Northland, with a specific focus on the Ngāpuhi rohe. There is an expectation that this is focus area is broadened in the future on a case-by-case basis.

Whenua-based strategy

Tupu Tonu is taking a whenua-based approach to investment which broadly falls into four categories, each representing a different use of land:

  • Property;

  • Primary Industries;

  • Infrastructure and Energy; and

  • Other investments (which may include some investments that are not whenua based).

Investment model

Tupu Tonu is interested in both co-investment models such as partnering, and full ownership where it has the capability and capacity to manage the investment appropriately.

Predominantly, Tupu Tonu will invest using equity (as opposed to lending or providing grants).

 

Tupu Tonu will seek protections and shareholder rights commensurate with its ownership interest, for example directorships or reserved matters. As a Schedule 4A company, Tupu Tonu is not subject to income tax.

Initial investment screening criteria

Tupu Tonu is looking to acquire assets with a typical investment size of $2-$15 million. Each investment must meet the following initial investment screening criteria:

  • Be commercial in nature;

  • Not be unduly high risk in nature;

  • Achieve market returns;

  • Be within Northland, with a specific focus on the Ngāpuhi rohe; and

  • Reflect our responsible investing (RI) approach – our social, environmental and cultural kaupapa.

Exclusions

Tupu Tonu is a commercial long-term investor. This means it is less focused on opportunities to purely generate short term returns.

 

The investment approach of Tupu Tonu excludes venture capital investments, grants, feasibility studies, research and development or any investment that is in breach of our responsible investing approach outlined below.

 

Tupu Tonu is not permitted to invest outside of New Zealand.

Our responsible investing approach

Tupu Tonu is committed to acting as a responsible investor. As such Tupu Tonu has regard to the environmental, cultural, and social impacts of all potential opportunities as part of our investment approach.

 

Tupu Tonu has a secondary outcome of contributing to the regional economic growth of Te Tai Tokerau. Our investment decision-making approach takes into account downstream socio-economic benefits for local hapū and communities, without compromising our commercial investment objectives.

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