New fund offers PKW opportunity for large

The announcement of the launch of a brand new investment fund signals the initial step of the Parininihi ki Waitotara diversification strategy that will bring high-yielding returns for the organisation into the future.

Te Pūia Tāpapa brings together 26 Māori entities from across New Zealand into a single co-investment fund worth more than $115 million to date. The fund has also signed a Memorandum of Understanding (MoU) with the NZ Super Fund, committing to a preferred partnership arrangement that gives added leverage when identifying large-scale investment prospects.

The name of the fund, which was chosen with the help of Hemi Sundgren of Te Atiawa, is a concept that has its origins in growing kūmara. A tāpapa (or Pārekereke) is a seed bed used to grow the kūmara tipu. The use of the word ‘Pūia’ in this context takes on the meaning to cluster or bunch up. In essence, Te Pūia Tāpapa symbolises a cluster of seed beds used to grow kūmara.

“The creation of the fund has involved collaboration between many different Māori organisations to create a single vehicle that will seek out large-scale investment opportunities that would not otherwise be avalaible to us,” says Joe Hanita, PKW General Manager Finance and Investments. “It is 100% owned and 100% controlled by Māori, with each member reflecting similiar aspirations when it comes to environmental, social, cultural and econcomic values.

“This alignment across our values set will continue when it comes to the types of investments the fund makes.”

PKW’s stake in Te Pūia Tāpapa stands at around $2 million and represents the first manifestation of the diversification strategy for the organisation that includes identifying collective investment vehicles.

“This is a tangible outcome of the work we have been doing in this area as part of our big picture and journey moving forward,” says Joe. “While it is a modest investment to start, it represents a big step forward in the way PKW will manage its assets in the future, alongside our other strategic focus areas such as our developing property portfolio.”

PKW was an active participant in the conversations leading up to the formation of the fund and Hinerangi Raumati-Tu’ua, Chair of the PKW Committee of Management, is also a director on the Te Pūia Tāpapa Board.

Potential investment opportunities for the fund are to be investigated over the next six to 12 months, along with similar mutually beneficial arrangements with other large NZ investors that reflect a similar investment approach and take a longterm view when it comes to return potential.

“This is an exciting step forward in putting our diversification strategy into action. Investment into the future success of other businesses and organisations across Aotearoa will help ensure the future success and growth of PKW,” says Warwick Tauwhare-George, PKW CEO. “I am also looking forward to the potential opportunities and conversations being part of Te Pūia Tāpapa will bring us. This is just the start of a journey that will see our core strategic vision come to fruition.”