The government-owned venture capital outfit, NZ Growth Capital Partners (NZGCP), has cleaned-up its act following a period of instability and a structural overhaul, according to the group’s latest annual report.
David Smol, recently appointed as chair, says in the report that as well as switching to a new investment mandate last year, the organisation “underwent a period of introspection, with an independent review into NZGCP’s culture”.
“The review identified issues with several aspects of the organisation culture and workplace conduct,” Smol says.
“The review made a series of recommendations to address these matters. These included a need for governance and management improvements over staff appointments and departures; gender and ethnic equity practices; workplace behaviour; and staff complaints.”
He says NZGCP had agreed to all of the review recommendations, implementing all but one as at the time of publication.
“Alongside that, since the start of 2021 we reviewed other aspects of our approach and management, and implemented a number of further changes,” Smol says.
Previously known as the NZ Venture Investment Fund (NZVIF), the entity adopted the new brand last year after a government-initiated reboot saw the NZGCP transition to a new fund-of-funds approach overseen by the NZ Superannuation Fund (NZS).
Under the updated model, the NZGCP will ultimately receive an initial $300 million injection of state cash (including $240 million diverted from money tagged for the NZS) to be distributed among private venture capital funds with local links.
To date, the NZGCP has committed about $150 million across six funds with only a handful of further mandates expected to be awarded. The group also operates a start-up seed capital vehicle, now dubbed the Aspire fund, valued at $123 million at the end of June (up from $85 million last year).
But in the lead-up to the restructure, the NZGCP saw significant staff volatility as well as a complaint lodged against then chief executive, Richard Dellabarca.
Dellabarca resigned last August with one-time NZS portfolio manager, Daria Murray, named as replacement the following month. In an incident yet-to-be explained, Murray, never took up the role.
The NZGCP report says: “In the many staffing changes since last year, former CEO Richard Dellabarca left after 4.5 years, and James Fletcher was appointed as Interim CEO for the period from December 2020 to August 2021. James Pinner has subsequently stepped in as Interim CEO. Rob Everett [former Financial Markets Authority chief] will join NZGCP in January 2022 as the permanent CEO.”
As well, the government installed a new five-person board last December to replace incumbents Murray Gribben, Debra Birch and Emma Loisel.
NZGCP employee expenses almost doubled over the year to $4.2 million from $2.4 million in 2020, the accounts show, pushed up in part by the merry-go-round CEO costs including a $379,000 payout to cover “termination and associated fees” for axing a previous chief (or chiefs).
As at the end of June, the NZGCP counts 14 employees paid $100,000 or more with the top job worth almost $380,000 in that period compared to just under $550,000 for the 2020 financial year.