AUCKLAND, Today: Zealandia has launched as a new infrastructure fund manager with $300 million committed by cornerstone investor Accident Compensation Corporation (ACC).
The business has been created to help enable, accelerate and improve infrastructure delivery in New Zealand through public private partnerships.
Zealandia is collectively owned by ACC, infrastructure advisory firm Mafic Partners, Zealandia CEO Scott Priestley and Mafic Partners Managing Partner Duncan Olde.
It has opened its capital raise for Fund I and an iwi sidecar, Te Aka Haumi, which will invest alongside the main fund in all projects except those tied to the corrections sector.
ACC has committed $300 million to Fund I, which is targeting a total raise of $450 million from New Zealand long-term wholesale investors, with the ability to increase to $600 million.
Fund I and Te Aka Haumi are designed to give investors including iwi, KiwiSaver providers and community trusts access to long-term investments supporting critical infrastructure across the country.
The launch comes as New Zealand faces a major infrastructure shortfall.
The New Zealand Infrastructure Commission estimates the country’s infrastructure deficit at around $210 billion, with total investment needs potentially reaching $1 trillion over the next 30 years.
Public private partnerships are seen as part of the solution, allowing government to accelerate essential infrastructure delivery while drawing on private sector capital and expertise.
Zealandia says it has been established to support local investors putting money into New Zealand infrastructure while targeting long-term inflation-linked returns.
“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.” – Scott Priestley, Zealandia CEO
Zealandia CEO Scott Priestley said the funds are designed to help New Zealand investors put private capital to work while backing essential public infrastructure.
“PPPs generate stable, long-term cash flows that are typically inflation-linked and supported by government agencies. They have a strong track record of delivering consistent returns while helping to build the infrastructure New Zealand needs,” said Priestley.
Fund I has an initial five-year investment period and an indefinite term, reflecting the long-dated nature of PPP concessions.
It is targeting pre-tax project returns of 9-12 percent 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)
The team behind Zealandia brings direct experience sourcing, securing and managing infrastructure investments in New Zealand, with Mafic Partners and ACC both heavily involved in the sector.
Priestley has spent 15 years in infrastructure and has worked on seven of New Zealand’s 10 PPPs to date.
“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.”
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 $2 million for iwi investing in Te Aka Haumi.
Share this Post
