DiscoverMoney Made SimpleMMS #25 | WTF is Private Capital? What it means and why it's great for investors
MMS #25 | WTF is Private Capital? What it means and why it's great for investors

MMS #25 | WTF is Private Capital? What it means and why it's great for investors

Update: 2024-06-17
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In this episode of Money Made Simple, Liv is joined by Simplicity's (quietly) kick-ass Head of Private Capital, Matt Houtman, to delve into the intriguing but sometimes confusing world of Private Equity and Venture Capital. Get ready to understand why a KiwiSaver and Investment Fund manager would invest in private companies  (rather than just the share market), and how it specifically benefits investors. This week's episode covers:

  • Matt's journey from investment banking, to raising $500 million in funds, to joining the Simplicity team
  • The key differences between private and public investments
  • What jargon such as private capital, private equity, and venture capital ACTUALLY mean
  • Simplicity's strategies and criteria around this type of investing
  • A look at the relative size of our private capital - and the outsized returns-to-date
  • The long-term benefits of private capital investments for investors
  • Insights into how Simplicity balances fundamentally passive investment strategies with more active private capital investments

Resources we mention in this episode
- Simplicity's Responsible Investment Policy
- Venture capital via Icehouse Ventures
- Private equity businesses Simplicity invests in

By the end of this episode, you'll have a clear understanding of how private capital investments work, and why they are an exciting and beneficial addition to an otherwise predominantly passive portfolio. You'll discover how these investments drive exciting potential returns for members while supporting NZ's economic growth. Win-win!

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Disclaimer: This podcast contains personal opinions and is intended to provide educational information only. It doesn't relate to your particular financial situation or goals and is not financial advice or recommendations. Simplicity New Zealand Limited is the issuer of the Simplicity KiwiSaver scheme and investment funds. For product disclosure statements please visit Simplicity's website simplicity. kiwi.

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MMS #25 | WTF is Private Capital? What it means and why it's great for investors

MMS #25 | WTF is Private Capital? What it means and why it's great for investors