Fund Structure
The Fund is Southern Cross Infrastructure Fund Limited Partnership (NZBN: 9429053914361). The Fund’s General Partner is Southern Cross Funds Limited which is registered as a financial services provider in New Zealand (NZBN: 9429053592156, FSP1012448).
The Fund's Statement of Investment Policy and Objectives (SIPO) sets its mandate. The Fund invests in New Zealand infrastructure and the operating businesses that depend on it, across digital infrastructure, renewable energy, marinas and waterfront infrastructure, industrial and port adjacent operative infrastructure, cold storage and export logistics, educational facilities and purpose-built student accommodation facilities, aged care facilities and retirement villages, and hospitality and tourism (see Investment Sectors). The strategy is not a pure property investment strategy. The Fund takes ownership in the business that holds the permits, contracts, staff and systems and runs the facility, and its returns are driven by operating performance such as generation, occupancy, throughput and utilisation. Where the Fund develops, it does so only to expand or establish operating capacity it or the investee entity will run and hold, never for land banking or sale on completion. Every investment must pass the Fund's four limb Infrastructure Eligibility Test at both initial and final Investment Committee (see Investment Selection). At least 70% of the Fund is invested in New Zealand, investments are typically held for three to seven years, and uninvested cash is capped at 15% of committed capital. The full SIPO is available to wholesale investors on request.
The Fund is only open to wholesale investors as defined in the Financial Markets Conduct Act 2013 (FMCA), and interests in the Fund are not offered under a regulated offer within the meaning of the FMCA.
All investments involve risk, including the potential loss of some or all invested capital. Investment values and returns may rise or fall, and past performance is not a reliable indicator of future results.
Fund Pillars
Hands-on management
Fund managers directly originate, develop and manage deals end-to- end allowing the fund to pursue value-add strategies unavailable to passive capital providers.
6% Preferred Return
The Fund targets paying investors 6% of their invested capital (non-compounding) each year, net of fees. This is intended to provide investors with regular cash income rather than requiring them to wait until investments are realised to receive returns.
No Carry / No Carried Interest
The Fund manager does not earn carried interest, meaning the fund management does not absorb a share of any fund profits. This allows investors to retain a greater share of investment returns.
Tax-efficient
The Fund’s pass-through limited partnership structure and tax efficient planning is designed to mitigate PFIC exposure for US investors and can minimise tax leakage for investors in other countries. Investors should seek independent advice relevant for their situation.