Punakaiki Fund

[Chanchay]

Kia Ora all,

Punakaiki Fund may be listing in the next year or so but I was interested to know if anyone else is a current investor?

I lurk around here a fair bit to read up on NZX shares but would very much like to start a discussion on Punakaiki Funds Portfolio Companies if there is any interest.

[Sideshow Bob]

4 pages of discussion, so there must be some interest, or at least interest in bagging! ;)

https://www.sharetrader.co.nz/showthread.php?9187-Punakaiki-Fund-potential-IPO&highlight=punakaiki

[hardt]

Kia Ora all,

Punakaiki Fund may be listing in the next year or so but I was interested to know if anyone else is a current investor?

I lurk around here a fair bit to read up on NZX shares but would very much like to start a discussion on Punakaiki Funds Portfolio Companies if there is any interest.

I am a big fan of Punakaiki and Lance Wiggs, been invested for just over a year now.

EverEdgeIP - This past decade has seen intangible assets takeover, this is where most of the market is moving and EEIP will capitalise on it. ( VC loved )

We are delighted to announce that we have increased our shareholding in Everedge from 4.6% to 30%. We did this by issuing 80,283 shares in Punakaiki Fund to seven Everedge shareholders, in return for their shares in Everedge, as well as a small amount of cash. We set the price for this transaction at $21 per Punakaiki Fund Share, agreed just after the close of the public offer in December last year. After a lot of paperwork we can announce the transaction now.

Our Everedge investment was previously very small versus the amount of time spent by myself on the business, and Chris and I wanted to either increase our shareholding or look to reduce my time. We negotiated with the two key holders of Everedge shares, Bruce Sheppard and Lewis Holdings, and were very happy to accept offers from other Everedge shareholders as well.

The future for Everedge looks strong, with growing offices in Singapore and Australia driven by an excellent relationships with the Singapore IP Office and the IP Office of Australia, as well as the original New Zealand office. Everedge is adding major private clients in both new markets as well as supporting clients in the US and Europe. It does seem that Everedge's advisory and investment valuation services are highly valued overseas, and so they are seeking to take advantage of that.
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12040941

O N C E I T - My friends, workmates and myself buy a lot of stuff from this one... that's all I can really say. ( apparently they are doing well )

Timely - Booked a cut/shave at my barber last week using Timely, every other month I book a few weeks with a PT using Timely as well.
Extremely well loved software with businesses. ( VC loved )

Coherent Solutions - Make very expensive equipment that analyses optoelectronics and telecommunications equipment.
"We have led a large investment round into Coherent Solutions, and will be joined by three other local funds and potentially an offshore investor"

Generally funds trade at a hefty discount to NAV so I am not very excited for an IPO... but it will provide significant funding which has been holding them back apparently.

[drcjp]

Computers, computers....code code code......111011101110000.....yawn

[kiwidollabill]

I'm a supporter. Its bloody hard to find capital in NZ for early stage startups. NZ needs more of this. Some cool companies in the portfollio which I have used over time.

[Chanchay]

4 pages of discussion, so there must be some interest, or at least interest in bagging! ;)

https://www.sharetrader.co.nz/showthread.php?9187-Punakaiki-Fund-potential-IPO&highlight=punakaiki

Aha! I should really learn to use that search function. Here was me thinking that the 8 pages on the NZX forum was all there was to see.

Talking about Portfolio companies can anyone summarise the NBR article on Melon Health's announcement yesterday? I'm too cheap to splash out for a subscription... perhaps if the next announcement pleases I will find the coin.

[Chanchay]

I'm a supporter. Its bloody hard to find capital in NZ for early stage startups. NZ needs more of this. Some cool companies in the portfollio which I have used over time.

Couldn't agree more, I imagine Lance would find it frustrating putting all this work into capital raising and having the money just trickle in. The last few raises have really prioritised reinvesting in existing portfolio companies instead of investing in new ones. I hope that this is because the existing companies seem to be doing well rather than the fund simply not having enough new capital to invest, i suspect it might be the latter.

[lancewiggs]

Lurker here. I'm happy to answer any questions asked directly.

[Joshuatree]

Hi Lance do i just google Punakaiki to do a bit of research on it , returns and risk, liquidity etc. Could be a good addition to my portfolio.? Thanks

[Chanchay]

Hi Lance do i just google Punakaiki to do a bit of research on it , returns and risk, liquidity etc. Could be a good addition to my portfolio.? Thanks

Hi Josh, the details from the last raise in nov 2017 can be found here: https://punakaikifund.co.nz/key-documents/

[Chanchay]

Lurker here. I'm happy to answer any questions asked directly.

Hi Lance,

I didn't expect to see you show up here. I have a couple questions for you:

1. Have you found raising funds in the last 12 months harder than you anticipated? If so, could you discuss why you think this is?

2. You recently surveyed shareholder interest in regards to the timing of an IPO, I will be honest, although I replied, I was very aware of my lack of knowledge in how to make an assessment of this, which i made quite clear in my responses. Could you perhaps discuss some of the criteria or key considerations that you think should be evaluated when doing so?

Many thanks,

[lancewiggs]

Hi Chanchay
1: As we have grown Chris and I have become better at the craft of writing fund raising documents, but have spent less (a lot less) time on actually getting out there and meeting people. So the answer is 'yes', but not necessarily because we see a difference in the market. We are lucky to have very supportive shareholders, and are confident in the underlying value of the investments.
The market has changed though and while there is still an overwhelming number of opportunities versus money, we are also seeing new funds appearing. Meanwhile we now have 4 years active investing as PFL and have made over 70 investment decisions, and are learning all the time.

2: That (first) survey was to test the waters, and we did have plans to send more material out before a vote. What happened in that survey though was interesting - investors gave us a signal (we think) that says "an IPO is good - but wait until the time is right - probably 2020". The most experienced investors (self identified - the survey was anonymous) had longer timeframes. So we are likely to survey investors again, this time counting the votes, including the 'don't know - I need more information" responses.

Factors that matter for an IPO decision are:
- the cost of the IPO and ongoing costs. These are quite high, and a main reason for the $100 million find size target before we IPO.
- the number of shareholders, liquidity of shares
- ability to raise larger sums from investors with 'listed shares only' mandates - e.g. Kiwisaver funds
- the propensity to trade at a discount to NAV, and how much that might be
- whether or not we have had any exits that really shift the value per share
- for individual investors - your desire for shorter term liquidity versus longer term gains.
- distraction for the manager, especially when sub-scale

[lancewiggs]

That's right - thanks Chanchay. Obviously I'm not able to comment on whether it would be a good addition to your portfolio Joshuatree.

[bullfrog]

Been in for several years and voted against an ipo. I believe there needs to be track record of listings and exits as without this it’s all promises, and listing on promises is risky to say the least. Also look at the disaster of PVL, a big negative for this sector.
I use mindful, worked with everedge, early days but could be a few crackers in the fund.

[Joshuatree]

Thanks Chanchay and lance.

[lancewiggs]

> I believe there needs to be track record of listings and exits as without this it’s all promises, and listing on promises is risky to say the least.

That seems to be the consensus feeling, and we'd rather focus on helping companies grow (and potentially IPO etc.) than our own IPO.

>Also look at the disaster of PVL, a big negative for this sector.
They have shown how not to do it, and we are observing and learning