Small and medium-sized businesses could get a hand-up from the taxpayer under plans by the New Zealand Superannuation Fund to invest $30 million in a fund targeting private companies.

The $15.9 billion "Cullen fund" yesterday allocated the money to private equity investors Waterman Capital to invest in a new $75 million fund.

The private equity fund, which is the second raised by Waterman, will be used to invest in Kiwi businesses valued at between $10 million and $50 million.

Waterman Capital executive director Chris Marshall said it was only months away from using the money to invest in its first company.

"We are looking at some exciting opportunities out there."

Marshall said the fund would invest in between seven to nine companies with around $7 million to $8 million allocated to each.

"We don't target specific industries. But what we look out for is good management, the market position, track record, growth potential and characteristics of the industry."

The fund was particularly interested in any company with strong export potential.

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Source: Tamsyn Parker, www.nzherald.co.nz
Photo: Martin Sykes