Simplicity Private Equity Fund Invests Into Kiwi Tax Tech Company DataTorque

Simplicity, New Zealand’s nonprofit KiwiSaver and Investment Fund manager, has announced that its Private Equity fund has taken a minority stake in Kiwi tax tech company DataTorque.

This is the fund’s fourth direct investment in innovative Kiwi businesses.

“We’re excited that our fund will be investing in DataTorque,” said Sam Stubbs, Managing Director of Simplicity. “We believe the company (of which Simplicity’s Private Equity fund now has a 30% stake) has huge potential to grow and make a real difference in the world.”

The Wellington-based company is one of New Zealand’s leading tech players in the revenue management software space. It operates in 16 countries helping nations to become more efficient in their tax collection methods and systems.

Its focus is on tackling complexity by designing and delivering practical solutions that enable efficient revenue collection.

DataTorque chief executive, Bill Chatwin, said Simplicity was a good value-fit for the company.

“We’re incredibly passionate about the difference we can make in the world. With our support, governments can collect more revenue to enable them to provide public services and strengthen economies, creating opportunities that make a good life for all citizens.”

“Tax works best when it's transparent, fair, and people can see the outcomes, and automation/digitisation is an enabler for this. These are, again, themes that resonate with our understanding of Simplicity’s reason for being,” he added.

Chatwin said trends in taxation represent a huge opportunity for DataTorque, which employs 160 people worldwide.

“Both the IT and tax markets are developing incredibly quickly and there is a large amount of focus and investment flowing into digitisation, reducing tax leakage and ensuring data sharing and consistency across jurisdictions.”

This latest investment marks another milestone for Simplicity’s Private Equity fund as it continues to invest in innovative Kiwi businesses.

Over the last two years, the fund has also taken a direct stake in Quantifi Photonics, a critical supplier to optical networking tech and research companies worldwide, and Reliable Foundations, a leading supplier to housebuilders and retirement villages.

Simplicity’s private equity investments have grown to more than $44 million since 2017, when its Private Equity fund took an 11% stake in Icehouse Ventures, a New Zealand private equity business.

Investors in the High Growth and Growth Funds of the Simplicity KiwiSaver and Investment Funds schemes have investments through the Private Equity fund.

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