The Rutherford Innovation Fund LP (Rutherford) invests in innovative NZ companies with strong profit potential serving large and fast growing global markets. It provides the opportunity to invest in attractive companies that are not currently being noticed by international investors.

The fund is named after Nobel Prize winning NZ Scientist and the father of modern nuclear physics, Ernest Rutherford, described by Einstein as “a second Newton”. He was the first person to split the atom and verify the equation E=MC². He is buried in Westminster Abbey next to Isaac Newton.

Rutherford invests in early to mid-stage pre-IPO companies in the small to medium cap market where risk is reduced, investment capital is scarce and the potential returns are highest. Rutherford targets 30%+ per annum returns, will pay annual distributions as cash-flow allows and uses no leverage.

Milestone seeks to help our portfolio companies achieve international valuation metrics and China is a key focus for us due to its size, interest in new technologies and growth potential. Our team has a strong presence there and has already helped three of our companies enter the market.

While Rutherford is opportunistic in outlook and can invest into any sector, Milestone currently sees the greatest potential in Clean Tech. Rutherford offers the first opportunity for smaller investors to access pre-IPO Clean Tech companies which many institutional investors believe will show the greatest growth in years to come.

Rutherford’s target companies have a strong competitive edge or unique product/service with global market potential in a high growth area, a proven, strong management team in place incentivised by equity participation, and existing investment from third parties and/or our directors.

Portfolio companies will include some companies that the directors have founded or have made existing investments in from another program. This gives us the benefit of having proprietary insight into these companies and focuses us on such ‘high conviction’ trades.

Rutherford has strong risk management and operational controls with Ernst & Young (auditor) ensuring compliance with investment guidelines and robust independent investment administration by Infiniti Solutions.

The Rutherford Innovation Fund targets an exit of portfolio positions within three to five years of investment to return cash to investors by: