In the first part of a two-part series Pathfinder Asset Management director John Berry explores where private equity should fit into KiwiSaver.
Private equity involves investment in unlisted companies. These generally require long time horizons and are perceived as delivering high returns. It sounds perfect for KiwiSaver, yet there are few examples of KiwiSaver schemes embracing private equity investment. This month we look at the private equity market in New Zealand and opportunities to invest. In Part 2 next month we will focus on growth KiwiSavers and whether they should (or actually do) include private equity as an alternative investment.