New Business First To Attain Financial Markets License

New Business First To Attain Financial Markets License

New investment management company, New Ground Capital (NGC), has become the first to receive a managed investment scheme license under the Financial Markets Conduct Act 2013.

Launched in March this year, NGC was established to develop innovative investment solutions – including previously untapped areas of capital demand – and grow appetite for managed investment in private equity, unlisted property and social enterprise.

NGC Managing Director Roy Thompson says gaining the license this early on is a significant achievement for the relative newcomer to the sector.

“We’ve built a robust investment platform under the new legislative regime and are now well positioned to develop new opportunities such as a private equity product, focusing on small and medium sized businesses.”

Mr Thompson says this is an area that has previously attracted little investment interest.

“There are around 130,000 small and medium sized employers of this kind in New Zealand and they collectively account for around 28% of GDP. Traditionally they’ve been under serviced by our sector and we’re aiming to change that.”

Social enterprise investing, sometimes known as impact investing, is another area of interest for the business. This type of investing is very well established globally but is only starting to become known in New Zealand.

“We’re excited about the opportunities to introduce New Zealand investors to profitable investing in social enterprise projects.”

Mr Thompson says an example of this type of investment is a product NGC is currently developing that will allow investors to help fund the upgrade of New Zealand’s 25 year old plus rescue helicopter fleet.

The latest JP Morgan and Global Impact Investment Network survey of impact investing organisations reported US$46 billion in this type of investment under management - and the Australian market is predicted to reach A$32 billion within a decade (IMPACT-Australia 2013).

For more information visit www.newground.co.nz

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