Appendix 15 - Criteria for managed funds and direct investments

1. NZTE maintains a list of managed funds in accordance with the criteria set out below.
2. NZTE will determine if an investment into a New Zealand resident entity is a direct investment in accordance with the criteria set out below.
3. A business immigration specialist should rely on:
   1. the list of managed funds maintained by NZTE as evidence of whether or not the managed fund is an acceptable investment under managed funds (see BN7.10.10); and
   2. a letter from NZTE as evidence of an acceptable direct investment (see BN7.10.15), for either:
      • investment in an Investee Entity; or
      • investment in acceptable listed equities as a Wholesale Investor.

Definitions

1. Unless the context requires otherwise:

   Debt Security has the meaning given to that term in the FMCA.

   Discretionary Investment Management Service (a DIMS) has the meaning given to that term in the FMCA.

   DIMS licensee has the meaning given to that term in the FMCA.

   Equity Security means:

   a. a share in a company; or

   b. an equivalent interest in a body corporate, but

   does not include a Debt Security.

   Financial Product has the meaning given to that term in the FMCA.

   FMCA means the Financial Markets Conduct Act 2013.

   Investment authority has the meaning given to that term in the FMCA.

   Investee Entity means a body corporate that:

   a. is a New Zealand Resident Entity; and

   b. is not listed on any securities exchange or stock exchange.

   Managed Investment Scheme has the meaning given to that term in the FMCA.

   Managed Investment Product has the meaning given to that term in the FMCA.

   Net Committed Capital means the total funds committed to the Managed Investment Scheme or DIMS, minus the anticipated fees, obligations, expenses and liabilities to be incurred by the relevant Managed Investment Scheme or DIMS licensee.

   New Zealand Connection has the meaning given to that term in the Policy Statement on the Venture Capital Fund Act 2019, published by the Ministry of Business, Innovation & Employment and the Treasury and dated December 2019, amended to replace "New Zealand venture capital industry" on page 6 with "New Zealand economy generally" and to replace "New Zealand Venture Capital Market" in the third bullet point of the definition of "New Zealand Connection" on page 7 with "New Zealand economy generally.

   New Zealand Resident Entity has the meaning given to that term in BN7.10.20 of the Immigration New Zealand Instructions for the Active Investor Plus visa.

   Objective means the objective of the Active Investor Plus visa as set out in BN1 of the Immigration New Zealand Instructions for the Active Investor Plus visa.

   Principles means the principles for assessing whether direct investments or managed funds are acceptable investments, being investments that:

   1. clearly contribute to the Government’s economic strategy, by being invested into one of the following businesses which will deliver economic and other positive impacts for New Zealand (either as direct investments or through a managed fund):
      1. businesses whose business model does not involve acquisition or ownership of property; or
      2. businesses that depend on property to deliver their business model, including but not limited to any of the following sectors*:
         • technology;
         • manufacturing;
         • food and beverage;
         • renewable energy;
         • aged care;
         • primary sector such as horticulture (including post-harvest infrastructure), forestry, agriculture, or aquaculture; or
         • infrastructure (including tourism, film, health and education)

      *NZTE will consider the inclusion of businesses that sit in other sectors that add value to the New Zealand economy. For the avoidance of doubt, investments into pure property assets (for example: commercial, residential or industrial real estate) will not be considered acceptable investments under the Growth Category (managed funds or direct investments).

   2. is into legitimate Investee Entities or managed funds and proper verification is conducted to ensure this¹;
   3. does not prejudice New Zealand’s reputation as a responsible member of the world community².

      Provider of a discretionary investment management service has the meaning given to it in the FMCA.

      Wholesale Investor has the meaning given to it in the FMCA.

   ¹For the avoidance of doubt, this is not a test of the Investee Entity or managed fund’s financial health and growth potential, which is for the principal applicant to ascertain.

   ²A list will be published (and updated from time to time) of business activities that may prejudice New Zealand’s reputation as a responsible member of the world community.

   Managed funds

   Criteria for acceptable managed funds

2. A Managed Investment Scheme is an acceptable managed fund if NZTE is of the view that:

   2.1 it is managed by a fund manager and/or general partner that is appropriately registered and is a New Zealand Resident Entity;

   2.2 it will hold funds on the principal applicant’s behalf in New Zealand and in New Zealand dollars;

   2.3 it does not invest in Financial Products that are quoted on any securities exchange or stock exchange;

   2.4 it invests wholly or substantially in entities with a New Zealand Connection. For the purposes of this provision, "substantially invested in entities with a New Zealand Connection" means where a minimum of 70% of the initial Net Committed Capital made available to the Managed Investment Scheme is allocated for investment in entities with a New Zealand Connection; and

   2.5 it otherwise meets the Objectives and Principles.

   Criteria for acceptable discretionary investment management service

3. A Discretionary Investment Management Service (DIMS) is an acceptable DIMS if NZTE is of the view that:

   3.1 that service is provided by a DIMS Licensee who is a New Zealand Resident Entity;

   3.2 funds will be held on the principal applicant’s behalf in New Zealand and in New Zealand dollars;

   3.3 the investment authority does not permit investment in Financial Products that are quoted on any securities exchange or stock exchange;

   3.4 the investment authority requires investment wholly or substantially in entities with a New Zealand Connection. For the purposes of this provision "substantially invested in entities with a New Zealand Connection" means where a minimum of 70% of the initial Net Committed Capital made available to the DIMS Licensee is allocated for investment in entities with a New Zealand Connection; and

   3.5 it otherwise meets the Objectives and Principles.

   Managed funds and DIMS list

4. NZTE will from time to time publish a list of acceptable Managed Funds and DIMS.

   Direct investments

   Criteria for acceptable direct investments

5. An investment in listed equities that is considered an acceptable investment under BN7.10.15(a)(i) of the Immigration New Zealand Instructions for the Active Investor Plus visa is an acceptable direct investment if:

   5.1 the principal applicant is a Wholesale Investor and there is a separate wholesale offer in respect of the investment (through which the principal applicant invests); and

   5.2 NZTE pre-approves the investment.

6. An Investee Entity is an acceptable direct investment if NZTE is of the view that:

   6.1 it has previously received, or will receive, capital from an acceptable managed fund;

   6.2 it is listed on the NZTE Live Deals platform (as updated by NZTE from time to time); or

   6.3 it is otherwise acceptable for the purposes of the Active Investor Plus visa.

7. In exercising its discretion under paragraphs 5 and 6, NZTE may have regard to:

   7.1 whether economic and other positive impacts to the New Zealand economy will flow directly from the direct investment, through:

   • increases in economic output; and
   • creation or saving of jobs; or
   • increases in productivity and/or productive assets; or
   • investment into intangible assets (e.g. research and development or other intellectual property); or
   • other economic, social or environmental impacts;

   7.2 where the direct investment relates to a "start-up" entity or "greenfield" project, whether evidence of market validation, feasibility or other reasonable diligence has been provided, including (but not limited to):

   • milestones from inception to the start-up or greenfield project being commercialised; and
   • details of work undertaken in relation to technical, research and development, economic, market, legal and regulatory aspects of the start-up or greenfield project; and

   7.3 whether the direct investment otherwise meets the Objective and Principles.

Effective 01/04/2025