Rangatira Annual Report 2023 - Flipbook - Page 11
Ra n g a t i ra An n u a l Re p ort 2023
Looking forward we expect to experience some further
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Magritek and Fiordland Lobster – made modest increases
headwinds as marketing spend of customers comes under
to our stake by exercising our pre-emptive rights from
increasing pressure in a mature and highly competitive industry.
existing shareholders selling down.
FY23 Activity
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Fixed Income – received full repayment of a fixed income
instrument that we had in place since June 2020.
After what we believed to be a busy FY22, we have continued
to be active this year from an investment perspective, making
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Paid down all debt in Rangatira with the receipt of funds
several changes to the portfolio, adding new assets, increasing
from the sale of Domett Properties, Partners Life, and the
stakes in existing investments and exiting investments as well
Capital raise.
as completing the first ever capital raise for Rangatira.
New Capital
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We completed the issue of 3.2m A shares to raise net
After this activity, the total portfolio of private businesses will
be at $252m ($257m, FY22) or 67 per cent (89 per cent, FY22)
of the portfolio, with the remainder invested in cash and listed
equities.
proceeds of $45m, with 25 per cent from existing
shareholders, 75 per cent from new shareholders and 12
per cent coming from entities associated with staff and
directors.
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heading into, with quite high liquidity to invest in new businesses
or provide additional capital to existing investments. We now
don’t expect to do this regularly, it has both provided us
hold over 30 per cent of our investments in cash or listed stocks.
with additional capital to deploy and brought with it new
Our cash is in term deposits with trading banks on a mix of
shareholders aligned with Rangatira’s approach to long-
maturities between 3-6 months.
private New Zealand business.
New Investments
NZ Scaffolding Group – purchased a 28 per cent stake in a
Wellington-based scaffolding business with 12 branches
across New Zealand.
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The portfolio is well placed given the economic settings we are
We were very satisfied with this outcome and while we
term investment and provision of permanent capital for
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The Portfolio
We now have a good spread of businesses across multiple
sectors and largely in the sectors that we have a conviction of
their prospects in the long term. We will continue to look for
further investments in these sectors and others that we see
good long-term prospects.
It is likely we may look to reduce the number of businesses we
are invested in so that we apply our energy to areas that make
Movac – committed to Fund VI, complementing our existing
the greatest difference to Rangatira’s long-term returns. While
commitments to Fund III and V.
being diversified across several businesses and industries does
reduce the risk of the portfolio, it is not efficient use of our
Existing Investments
capital and resources to be spread too thin.
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Partners Life – sold our 5 per cent stake to Dai-ichi Life
We have stakes in thirteen private businesses with our
Holdings. Investing initially in 2012 and in subsequent
investment ranging from under $5m to over $50m. Over
investment tranches in 2020 and 2022, we received $48m
the long-term, we would like the portfolio to be made up of
representing a 10.7 per cent pa return over the period.
approximately eight businesses with an investment value of
between $20m to $60m each. This change will not happen
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Boulcott Hospital – sold a 30 per cent stake to 24 of the
overnight but is the direction that we are heading toward and
specialists operating from the facility. This was concluded at
consistent with the plans shared at the time we raised capital
the same price that we invested in 2021.
last year. We expect to advance this in the coming year.
NZ Pastures – continued to provide additional capital to
We continue to actively look for new investments, looking at
purchase land for forestry development.
over 70 different opportunities each year. Some are quickly
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