Punakaiki Fund - potential IPO

[Fred114]

They're quoting Paul Callaghan in the glossy....best to avoid this one.....wasn't he the 'brains' behind Rakon?

[CJ]

Just had a very quick skim read... gotta love the fee's... that is if you are a director or associated with the fund!

Especially if the fund only starts with $5m. Fees look ok once the fund gets over $50m.

What would be good to see is a couple of high profiles investors (Sam Morgan, K1w1) saying they will be putting in a few million each to kick it off.

If they only raise $5m, there will be further capital raisings required which will need to be at a discount (the launch and first years fees will total $1m) unless they have some very early, quick successes.

[Toasty]

Especially if the fund only starts with $5m. Fees look ok once the fund gets over $50m.

What would be good to see is a couple of high profiles investors (Sam Morgan, K1w1) saying they will be putting in a few million each to kick it off.

If they only raise $5m, there will be further capital raisings required which will need to be at a discount (the launch and first years fees will total $1m) unless they have some very early, quick successes.

I'm not sure you would see high profile investors in something like this. They already have their established network of connections and this fund looks to me like the sort of companies that they are already involved in at an earlier stage before getting the next layer of investors on board. To my way of thinking anyway...

[CJ]

I'm not sure you would see high profile investors in something like this. They already have their established network of connections and this fund looks to me like the sort of companies that they are already involved in at an earlier stage before getting the next layer of investors on board. To my way of thinking anyway...

I think your right. The problem is they aren't going to get to the scale required if everyone just puts in a few thousand.

Disc: I'm interested but a bit uneasy. Might just throw a couple in and top up later if still interested when the expect next capital raising arrives.

[winner69]

They're quoting Paul Callaghan in the glossy....best to avoid this one.....wasn't he the 'brains' behind Rakon?

If that SIR Paul Callaghan he died last year

A great man who promoted innovation as the saviour of nz ....wad the quote in that context?

[newtrader]

Wiggs not planning to invest a lot of his own money in the fund.

http://www.stuff.co.nz/business/indu...ses-prospectus

Wiggs said he and Humphreys would not be investing more than five-figure sums in the fund themselves.

"I don't have a whole wad of cash because I have never had a major exit," he said.

"The money I have invested over the years is essentially all tied up in existing investments."

[janner]

Sounds like a potential disaster to me.
Unlisted company investing in start ups.
How do you value it?
How do they value their investments? .

Could not agree with you more percy.

With IPO's coming quick and fast.. I feel this is yet another one to avoid.

[CJ]

Analysis from someone in the industry:

http://diversity.net.nz/punakaiki-fu...rs/2013/08/22/

[Snow Leopard]

After giving this some serious thought I am not buying in to this for two primary reasons:

1) Could be rather difficult to get out and a tiger likes a clear exit;
2) Being able to realistically value the worth of the fund myself;
3) Misgivings over the fee structure and especially the minimum fee payable.

Best Wishes
Paper Tiger

[CJ]

After giving this some serious thought I am not buying in to this

I'm afraid I tend to agree with you. I really wanted something like this to come along and really want to invest but my current thinking is not to for the following reasons:

- Liquidity. I really need to do more research on the Link facility they will be using.
- Fund size. I think it is unlikely they will raise that much (gut feeling only). This means IPO fees and other fees will make a huge dent from day one. It also means further capital raisings will be required.
- fees. I am happy with the level of fees with the exception of the minimum. I understand why they have done this as they need money to do their job but it would have been good that they took some of the downside should the fund be small.
- Directors. Sandy. Not sure whether he is a good/bad but I am think (gut feeling only) there will be more people not investing because of him, than investing because of him, again effecting the fund size.
- Supporters. It would have been good to get a named investor behind the fund (ie. Sam Morgan, Drury etc) but they probably all have their own personal funds so aren't the target market.

Did anyone go to the road show. I was going to try and make the road show but they moved the time and I couldn't make it. That might have answered a lot of my questions but I don't feel I know enough to invest.

I am still considering putting the minimum in and making the real decision when they do their next capital raising. Alternatively, I might try to buy after IPO at a discount to IPO price just to add some liquidity (since on day 1, NTA will be below funds raised due to IPO costs). Alternatively, I may win lotto tomorrow and support the cause.