Insights
Rātā + Pathfinder - your questions answered
It’s business as usual for Pathfinder despite an exciting acquisition
We are delighted to share the news that the Rātā Foundation has acquired a 25% stake in Alvarium (NZ) Wealth Management Holdings (Alvarium) – which owns Pathfinder Asset Management Ltd. Whist this is an exciting opportunity for Pathfinder, we want you to know, that we will remain business as usual. We have taken the opportunity to answer some key questions here.
Is this good for Pathfinder and investors?
Yes! Rātā Foundation is the largest community trust in the South Island. They are now a shareholder in Pathfinder’s parent company and have invested $10 million into Pathfinder’s Trans-Tasman equity strategy. While this does not change anything day-to-day for Pathfinder investors, we feel their strong alignment and financial interest in Pathfinder is a huge validation of our work.
Will anything change with how Pathfinder invests?
Nothing changes with how Pathfinder manages our KiwiSaver and managed funds. We continue to invest in line with our Ethical Investment Policy and Statement of Investment Policies and Objectives (SIPO). In addition, it is important to note this has no impact on the fees we charge or the funds we offer.
What is the reference to growing in the South Island?
Pathfinder (and its parent company Alvarium) have an important connection with the South Island. The Gough Family Office (based in Christchurch) is the largest shareholder in Alvarium/Pathfinder and has been an investor with Pathfinder since 2015. This reference relates to the possibility of Alvarium expanding its operations to include a South Island office.
What is the background of the Rātā Foundation?
Rātā Foundation is one of twelve philanthropic community trusts in New Zealand and is the largest in the South Island. It manages substantial funds (around $700 million) and distributes approximately $26 million annually to support community initiatives across Canterbury, Nelson, Marlborough, and the Chatham Islands.
Do they add anything to the Alvarium team other than capital investment into the business?
In addition to capital, Rātā Foundation will have board representation and bring valuable expertise in investing, governance, and community engagement. They also have deep networks in the South Island. Their shareholding and involvement align strategically with Alvarium’s community-focused investment approach, expanding our potential for growth and local impact.
Rātā Foundation has also invested $10m into Pathfinder’s Trans-Tasman equity strategy.
Are they buying equity from current shareholders or is this new equity?
Rātā Foundation has acquired 25% equity in Alvarium (NZ) Wealth Management Holdings Ltd. This is a combination of both a direct investment into the business and buying existing shares. [JB1] You can find more details on the Companies Register here.
How will the new equity be invested? (e.g. building up the investment team expertise, expanding the overall business – or shoring up the balance sheet?)
The equity proceeds invested will be used to expand and strengthen the overall Alvarium business, including Pathfinder.