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Growth Fund III is Icehouse Ventures’ third growth-stage venture capital fund. It is targeting NZ$150 million of committed capital to be invested in 20–25 New Zealand-founded or New Zealander-led technology companies, weighted to the latest private stages. The Fund is anchored by Generate KiwiSaver, and is managed by the same Partners who have led every flagship Icehouse Ventures fund.
Icehouse Ventures is New Zealand’s most active venture capital firm, having invested approximately NZ$850 million into more than 400 early-stage technology companies. The firm manages approximately NZ$1.5 billion in assets on behalf of more than 3,700 investors and runs the largest investment and back-office team in New Zealand venture capital. Over the past nine years it has had investments in nearly half of all early-stage companies funded in New Zealand.
Growth Fund III’s objective is to invest in established and high growth companies that have proven business models, unique technologies, established executive teams and Boards, significant commercial traction, and global addressable markets. Access to these opportunities is competitive, and Icehouse Ventures’ early-stage presence means it typically arrives at the growth rounds holding pre-emptive rights, long founder relationships, and years of performance information. Growth Funds I and II, invested on the same strategy by the same team, are tracking in the upper percentiles of their global vintage cohorts, with the substantial majority of value unrealised.
The Fund targets New Zealand-founded or Kiwi-led entities raising growth capital (Series A to Series D+) which have the potential to create category-defining companies, and asymmetrically high returns. The Fund is industry-agnostic and may invest across software, hardware, deep technology, agritech, medtech, AI, and other technology-enabled sectors.
Growth Fund III opened 1st April, and achieved its first close eight weeks later. It is the only New Zealand Fund to participate in its first three investments (Halter, Supabase, and Calocurb) and is moving toward a final close in December. The Fund is targeting NZ$150 million of committed capital, with NZ$90m committed to date, including Generate KiwiSaver (NZ$20m) and >300 high net worth investors. The minimum investment is NZ$50,000 called down in four equal tranches over three years. The Fund is offered on standard market terms: management fee equivalent to 1.5% for 10 years, and 20% carried interest above an 8% compounding preferred return. The Fund targets a 25% net internal rate of return and a 3.5x net multiple. The Fund is open to wholesale or eligible investors only.
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