Generate commits NZD55 million to private equity

The Generate KiwiSaver Scheme has committed to a USD25 million investment with CIM Group, a Los Angeles-based real estate and infrastructure owner, operator, lender and developer, to invest in mid-market North American infrastructure, in sectors including renewable energy, data centres, waste to renewable energy and social infrastructure, alongside a USD7.5 million investment into Novva Data Centers - a U.S.-based data centre company with ambitious growth plans.

Monday, November 27th 2023, 5:01PM

Generate Chief Investment Officer, Sam Goldwater, said “One of the key attractions of CIM Group is that the firm focuses on sectors that have clear structural tailwinds. For example, investments in solar and waste to renewable natural gas businesses have the potential to materially benefit from the Inflation Reduction Act (IRA) in the US as it provides meaningful tax incentives for renewable energy projects; and investments in data centres are looking to benefit from the digitilisation trend and the huge investment into A.I. occurring in the U.S.”

Generate’s members have had a great experience from investments into renewable energy and data centres to date, enjoying strong returns from the likes of Tilt Renewables and seeing meaningful uplifts in the valuations of Infratil’s investments in (renewable energy company) Long Road Energy and Canberra Data Centres. These investments have contributed to Generate’s market leading returns over the last 10 years. We believe Generate’s investments with CIM will positively contribute to our members’ returns over the next 10 years.’

This is Generate’s third significant investment into alternative assets in the last 12 months. Late last year the KiwiSaver and wealth provider committed to invest $20 million in the New Zealand based Movac Growth 6 Fund; a later-stage VC fund invested in Kiwi tech companies; and earlier this year Generate committed $20 million into Icehouse Ventures’ Growth Fund II - a VC fund that will support around 20 established New Zealand technology companies win on the global stage.

About Generate: Generate is an award-winning KiwiSaver and wealth manager with over $4 billion funds under management and a track record of strong long-term performance. In the recent Morningstar KiwiSaver Survey June Quarter End 2023, the Generate Focused Growth Fund returns ranked 1st out of 7 NZ Multi Sector Aggressive Category Funds, the Generate Growth Fund ranked 2nd out of 13 NZ Multi Sector Growth Category Funds and the Generate Moderate Fund ranked 1st out of 12 NZ Multi Sector Moderate Category Funds, for a period of 10 years as of 30/06/2023*.

About CIM Group: CIM is a community-focused real estate and infrastructure owner, operator, lender and developer. Since 1994, CIM has sought to create value in projects and positively impact the lives of people in communities across the Americas by delivering more than $60 billion of essential real estate and infrastructure projects. CIM strives to make a meaningful difference in the world by executing key environmental, social and governance (ESG) initiatives and enhancing each community in which it invests. For more information, visit http://www.cimgroup.com.

*© 2023 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution in New Zealand. Past performance does not guarantee future returns. Investment involves risk and returns can be negative as well as positive.

The issuer is Generate Investment Management Ltd. A copy of the PDS and advertising disclosures can be found at www.generatewealth.co.nz/disclosures

Media contact: Elizabeth Harding, Generate Marketing Manager, 021 304 886, elizabeth.h@generatekiwisaver,co.nz The issuer is Generate Investment Management Ltd. A copy of the PDS can be found at www.generatewealth.co.nz/pds

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