The Opportunity exists for wholesale investors to express interest in Origin Capital Fund 2.
In 2021, Origin Capital Partners (“OCP”) raised its first fund, focussed exclusively on investment in the New Zealand kiwifruit sector. Origin Capital Fund 1 – The Kiwifruit Fund (“Fund 1”) consists of 153 investors, with $85m (NZD) of committed capital. Fund 1 has a mandate to invest exclusively in the SunGold variety.
Origin Capital Fund 1 was raised with a simple value proposition – to provide an entry point for investment into a strong, stable and sustainable sector managed by an experienced and connected team with a track record of operational excellence, enabling consistent returns from land assets at above industry average levels. Our representation to investors was that a committed fund is the optimum vehicle structure for investment in the kiwifruit sector, as it provides benefits of scale, diversity and the ability to move quickly to acquire the right investments.
That value proposition promised has been delivered in the Fund’s first year:
- As at May 2022, the Fund had acquired or developed nine high quality kiwifruit orchards throughout Bay of Plenty, Gisborne and Kerikeri, comprising 102 canopy hectares in total. The Fund is now 95% deployed;
- The Fund is now Zespri’s 11th largest shareholder;
- The Fund paid a $3.0m distribution to investors six months after closing, representing a 7.2% cashflow yield on an annualized basis(1) ; and
- In February 2022, independent valuations of the Fund’s portfolio assets were completed, demonstrating a total return to investors(2) of approximately 25% in the Fund’s first year.
In March 2022, Origin Capital Partners successfully raised $37m of investor capital and completed its first close of Origin Capital Fund 2 – The Red, Gold & Green Fund (“Fund 2”). Fund 2 will also be focused exclusively on the New Zealand kiwifruit sector, where we continue to see attractive growth prospects for the industry. Fund 2 will invest in all three Zespri varieties – RubyRed, SunGold and Green – and will also invest in Zespri shares.
Fund 2 has had a busy start. Since first close in April, it has it’s first orchard under contract, it has secured all RubyRed and SunGold licence necessary for its upcoming development plans, and it has invested in Zespri shares.
Fund 2 has now reopened for investment and is expected to close at $50m, with applications for the Fund’s final close due no later than June 30th. We encourage investors who wish to learn more about opportunities to invest with Origin Capital Partners to touch base with the team at any time.