Lucia Dore Consultancy (LDC) has a number of investment opportunities – from beverage distribution to having your own boat made to your specifications. Our aim is to ensure that an investor perfectly matches any investment opportunity, providing insights and advice when required.

The NZ$36 billion New Zealand Superannuation Fund and Fidelity Life, New Zealand's largest Kiwi-owned life insurer, today announced a proposal for the Fund to take a minimum NZ$100 million, 41.1% cornerstone stake in Fidelity Life. The transaction is subject to a number of conditions, some of which require action from shareholders.

Fidelity Life Chair, Brian Blake, says securing the NZ Super Fund as a major shareholder will provide new capital which will enable the company to accelerate its growth strategy.

"Fidelity Life has experienced strong growth in recent years and this has outpaced our ability to fund the future rate of growth we're aiming for without additional capital."

"If our shareholders provide the necessary approval for the investment to proceed, the new capital will allow us to deliver on our future strategy providing strong, sustainable returns and growth over the long term," said Mr Blake.

Fidelity Life is privately held by more than 150 shareholders. The proposed investment is to be made up of $75 million of new shares issued to the NZ Super Fund at $115 per share; and the acquisition of a minimum of $25 million of existing shares. As part of the acquisition of existing shares, eligible minority shareholders (including all New Zealand resident shareholders) will have the opportunity to sell some or all of their shares to the NZ Super Fund for $130 per share. This offer does not extend to the Company's majority shareholders. The NZ Super Fund will acquire shares from the Fidelity Family Trust at $115 per share.

"The NZ Super Fund is a great fit with Fidelity Life. We were both founded by Kiwis for Kiwis and are focussed on protecting the future for New Zealanders. The proposed investment represents a strong vote of confidence in Fidelity Life by New Zealand's pre-eminent investor," said Mr Blake.

NZ Super Fund Chief Investment Officer Matt Whineray said: "This is a rare opportunity for the Fund to take a significant direct stake in a New Zealand life insurance company. The additional capital we are providing will support Fidelity's long-term growth plans."

Independent advisers Simmons Corporate Finance have concluded that the value of the Fidelity Life shares involved in the proposed transaction is in the range of $110-$130 per share and that the total value of the company is between $198 million and $220 million. 

"This is an exciting future step for Fidelity Life. We have come a long way since we were founded in 1973. We have more than 100,000 customers and our products are distributed via a network of 2,700 independent financial advisers and through strategic alliances. This new capital will enable us to build digital capability to support innovation, productivity and improved support for customers, advisers and our partners," said Nadine Tereora, Chief Executive of Fidelity Life.

Fidelity Life's Board is recommending shareholders support the investment. Shareholders, including the Fidelity Family Trust, will vote on changes to Fidelity Life's constitution needed for the proposal to proceed at the company's Annual Meeting on 12 December. If the constitution is altered and other conditions are met settlement will occur after then.

Shareholders can expect to receive their voting papers with the Notice of Meeting on 9 November.

About Fidelity Life
Fidelity Life is a New Zealand-owned insurance company with the purpose of protecting the New Zealand way of life. The company believes independent financial advice matters in ensuring Kiwis get access to the insurance protection they need. Fidelity Life distributes its products through a network of 2,700 independent financial advisers, as well as through strategic alliance partners, and employs around 300 staff across six offices. For more information please visit www.fidelitylife.co.nz

About The New Zealand Superannuation Fund
The $36 billion NZ Super Fund is a global investment fund that was established by the NZ Government to help pre-fund universal superannuation. A long-term, growth-oriented investor, the Fund has returned 10% p.a. since inception in 2003, and currently has around $5 billion invested in NZ, including significant stakes in Kaingaroa Timberlands, Datacom, Kiwibank and Metlifecare. For more information please visit www.nzsuperfund.co.nz

The mention of private equity often draws gasps of horror from many who are around. It’s true. Some private equity companies do horrible things- but not all. They can take over companies, rip the heart and soul from them- ie take away what makes the companies relevant and distinctive- and then sell the company, often for more money. I worked for one such company, and horror stories abound.

However, not all private equity companies are bad. Some do have a social conscious. Gaw Capital, a Chinese company, appears to be one such company. It has just invested in what appears “affordable” co-living spaces in China’s first tier cities.

  September 18, 2017, Shanghai - Real estate private equity firm Gaw Capital Partners announced that a fund under its management has invested in Harbour Apartments, a network of co-living spaces for young tenants in China’s first-tier cities.

The platform, founded in 2015, has invested in 40 compounds in 7 first-tier and prospective first-tier cities in China (Shanghai, Beijing, Shenzhen, Guangzhou, Hangzhou, Nanjing and Hong Kong), and seeks to fulfil an increasing demand for quality and affordable rental housing within China’s first-tier cities among fresh graduates and young white collar millennials. The platform has a target to open and manage 80,000 units by 2019.

The apartment units, which can be rented from RMB 3,000 to RMB 20,000 a month, come fully furnished in different sizes and layouts with trendy designs, often in city centers, and are surrounded by spacious common areas that cater to young tenants’ increasing demand for spaces to socialize. Harbour Apartments also makes use of online and offline events and apps to promote a sense of community among tenants.

This latest investment follows efforts by the Chinese government to boost the supply of rental housing and issue cooling measures as long-term solutions to resolve the overheating real estate market, which has been characterized by surging rents and a shortage of public rental housing.

Anticipating the direction of the government’s new policies to increase supply for rented accommodation, Gaw Capital sought suitable opportunities to invest in this area.

The deal marks Gaw Capital’s second private equity type of investment in China following its first investment in nakedHub, one of the leading co-working space operators in greater China and Asia Pacific.

Humbert Pang, Managing Principal and Head of China for Gaw Capital Partners, said, “China’s robust new economy has created unique opportunities for us. Millennials and the middle-class in China tend to be tech savvy, more sociable and are looking for a sense of belonging and adventure in big cities, which has made co-living spaces an ideal form of accommodation in the era of the ‘sharing’ economy. In addition to the traditional brick-and-mortar real estate investments, Gaw Capital is also embracing new opportunities in this new economic environment by not only providing capital, but also our in-depth expertise in management and global outreach to help tomorrow’s entrepreneurs to grow and thrive.”