rutherford fund

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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.

Our team 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.

Rutherford is opportunistic in outlook and can invest into any sector.

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 risk management and operational controls with Ernst & Young (auditor) ensuring compliance with investment guidelines and robust independent investment administration.

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

  • IPO or trade sale of the portfolio company:
  • Full or partial sale of the portfolio company to our Blackbird Fund and/or other investors focused on more mature business in the mid-large cap space.

The Blackbird Fund will be the sister fund to the Rutherford Innovation Fund focusing on larger transaction into later stage companies. Target size is NZD 200-400m and will invest NZD 10-50m per company on a co-investment basis with other institutions.

Blackbird may provide of liquidity for investors who wish to fully or partially exit the Rutherford Innovation Fund at maturity.

 The Blackbird Fund may launch in 2011.