Punakaiki Fund’s Largest Investment Leads To Its Largest Exit

Punakaiki Fund Limited (PFL) is delighted to announce the impending acquisition of Quantifi Photonics by Teradyne Inc (Nasdaq: TER), marking PFL’s fourth and largest major exit in four years. With an economic interest of 13%, Punakaiki Fund is the largest local investor in Quantifi Photonics, second overall behind US-based Intel Capital.

The acquisition is significant for New Zealand’s technology ecosystem. Lance Wiggs of Punakaiki Fund, and former Quantifi Photonics director, says:

“We are absolutely delighted with this result, which rewards the efforts of co-founders Andy Stevens and current CEO Iannick Monfils, and many others. It’s a great result for Punakaiki Fund, as the largest local shareholder, and a fantastic result for New Zealand’s technology investors, with over half of the shares owned by New Zealand based funds”

Impact on Punakaiki Fund

With rising Net Asset Value per share, recycling of capital into new investments and now capital distributions, PFL is delivering on its unique evergreen model.

Strong Returns for PFL

While the transaction price remains confidential, PFL anticipates strong returns from our original investment of over $7.5 million. The majority of these gains have already been reflected in PFL’s recent Net Asset Value reporting, with an updated result to be shown on the March 2025 NAV report, along with impacts from other company revaluations.

Enabling a Major Capital Distribution

The exit will allow PFL to execute a distribution of capital to its more than 1,000 shareholders under the fund’s new Capital Allocation Policy. The Board is considering approaches for the distribution, which is targeted for mid-year, after completion.

Recycling Capital

PFL will also recycle proceeds into new investments. With PFL’s investments in Quantifi Photonics enabled by the exits of Linewize, then Vend and Timely, this will effectively recycle already recycled capital. PFL is increasingly effective at deploying capital to drive returns.

Impact for New Zealand

Seven New Zealand based technology funds will collectively receive over half the economic value from the sale.

The other local funds include UniServices, K1W1, NZGCP’s Aspire Fund, Nuance VC, Pacific Channel and Simplicity’s Private Equity. Many of those funds invested across multiple and later rounds.

The sale will also provide significant returns for NZ taxpayers, with Auckland University’s Uniservices, and NZGCP’s Aspire Fund government owned, and two other funds supported by NZGCP’s Elevate fund.

Next Steps

The acquisition is subject to normal closing conditions, including New Zealand OIO approval, and is expected to close in the June 2025 quarter.

Punakaiki Fund will communicate directly with shareholders on the planning process for distribution.

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