Capital Connect
Active Investor Plus Growth Category Fund
Capital Connect is a NZTE-recognised Acceptable Managed Fund under the Active Investor Plus Growth Category. Structured for international investors seeking New Zealand residency through the AIP visa programme.
A market gap on both sides of the trade
New Zealand's banks have steadily retrenched from small and medium enterprise lending, yet bank business lending still reached NZD 43.5 billion, up 20.8% year on year. Behind that headline sits a structural gap: creditworthy SMEs seeking NZD 50,000 to NZD 1,200,000 of responsive, flexible capital are routinely turned away or delayed by institutions that no longer move at the speed real businesses require.
At the same time, the Active Investor Plus visa programme has built a pipeline of more than NZD 4.26 billion of international capital seeking acceptable Growth Category investments. That capital is chasing roughly 70 approved funds, many of which struggle to deploy meaningfully into genuine New Zealand assets, leaving investors exposed to slow or shallow deployment.
Capital Connect exists to close both gaps at once. The fund deploys international investor capital into secured, short-duration lending to established New Zealand SMEs, generating fixed contractual income for investors while giving borrowers the credit the banks will no longer provide.
What sets the fund apart
Local Expertise and Proprietary Deal Access
A New Zealand-based origination network built over a decade surfaces direct, proprietary deal flow rather than competing for loans auctioned to the widest market. Every facility is underwritten against first-hand knowledge of the borrower, the asset, and the exit.
Secured Lending with Direct Control
Every facility is secured by registered, first-ranking security over identifiable New Zealand business or property assets. Capital Connect controls the lending relationship, the documentation, and the exit, so investor protection never depends on a third party.
Stable Quarterly Income
Returns come from fixed contractual interest on each deployed facility, not from equity markets or asset speculation. Income is predictable and paid quarterly, giving investors a recurring yield stream independent of market volatility.
Portfolio Discipline
Maximum single-loan exposure is held under 5% of fund capital, with a target below 3%. Facilities run short 6 to 12 month durations, enabling active portfolio rotation and limiting duration risk across borrower, sector, and asset type.
Proof in numbers
Key structural characteristics of the Fund
The following highlights outline the principal investment characteristics of Capital Connect for wholesale investors.
Secured Private Credit
Every lending facility is secured against identifiable collateral. This provides a tangible first line of capital protection for each investment.
Experienced Team
Our management team has originated and repaid over 1,200 secured lending transactions, deploying more than NZD 260M across New Zealand's SME and property sectors.
Income Distributions
The Fund targets quarterly income distributions, generated from fixed contractual interest on each deployed facility. Target returns are indicative only and set out in the Information Memorandum.
Short Duration
Typical loan terms of 6–12 months create natural capital return events. This enables active portfolio rotation and reduces duration risk for investors.
Asset-Backed Security
Conservative loan-to-value parameters apply across all facilities. Security is taken over tangible business and property assets to protect investor capital.
Target returns are indicative only and not guaranteed, and are detailed in the Information Memorandum. Actual distributions will depend on portfolio performance, borrower repayment behaviour, fund expenses, and prevailing market conditions. Past performance is not indicative of future returns.
Security is the foundation of every facility we write
Capital Connect is a secured lender. We do not advance capital against cash flow alone. Every loan is backed by registered security over real New Zealand business and property assets, structured so that investor capital is protected throughout the life of the loan and prioritised in any recovery.
Multi-layer security structure
General Security Agreement
A registered GSA over the borrower's business assets, giving the Fund a first-ranking claim ahead of unsecured creditors.
Registered asset security
Specific security over the collateral backing each facility, including vehicles, equipment, trade receivables, inventory or property, perfected on the Personal Property Securities Register before any capital is drawn down.
Director guarantees
Personal guarantees from borrower directors or principals, aligning owner interests with loan performance and recovery.
Property caveats
Where real property secures a facility, a caveat is lodged to protect the Fund's interest over the asset.
Full security terms, lending parameters and asset coverage are set out in the Information Memorandum, available to eligible wholesale investors on request.
Request the IMA structured six-stage credit process
Capital Connect assesses every lending opportunity through a disciplined process, ensuring consistent underwriting standards and thorough documentation.
Deal Origination
Lending opportunities are sourced through the Manager's network, referrals, and repeat borrower engagement. Initial screening assesses borrower eligibility against the Fund's qualifying criteria.
Credit Assessment
Qualified opportunities undergo detailed credit analysis of financial performance, trading history, management quality, debt serviceability, and collateral. The Manager prepares a formal credit submission detailing findings and risk considerations.
Credit Committee Approval
All credit submissions are reviewed and approved by the Fund's Investment Committee before any commitment is made. The Committee applies the Fund's credit policy and may approve, decline, or request further information.
Loan Structuring & Documentation
Approved facilities are structured with defined loan terms, interest rates, repayment schedules, financial covenants, and security. Formal loan agreements and security documentation are prepared by legal counsel and executed before capital drawdown.
Monitoring & Covenant Tracking
Deployed facilities are actively monitored throughout the loan term, with borrowers providing periodic financial reporting. The Manager tracks covenant compliance, repayment performance, and collateral condition, escalating as required.
Loan Repayment or Exit
At maturity, borrowers repay principal and accrued interest, or the Fund's security is discharged upon refinancing with an external lender. In the event of default, the Manager pursues recovery through security enforcement and available legal remedies.
Fund Terms: Capital Connect
The following summarises key terms. Full terms are set out in the Limited Partnership Agreement available upon request.
What is the Active Investor Plus visa?
The AIP Visa Programme
The Active Investor Plus visa allows eligible international investors to obtain New Zealand residency by deploying a minimum of NZD 5,000,000 into approved Growth Category investment assets. Capital Connect is NZTE-recognised as an Acceptable Managed Fund.
Why Capital Connect?
NZTE-recognised managed fund targeting quarterly income with a capital-preservation focus. Quarterly distributions, 3-year minimum hold period for AIP compliance, and access to an experienced team deploying secured lending across NZ's real economy. Minimum investment and target return are set out in the IM.
Who can invest?
Wholesale Investor
Investment available under the Financial Markets Conduct Act 2013:
- • Wealthy person test (net assets NZD 5M+)
- • Eligible investor test (self-certification via adviser)
- • Large investor test (NZD 750,000+ commitment)
Active Investor Plus Requirements
Must hold or apply for AIP visa under Growth Category:
- • Eligible investment amount detailed in the IM
- • 3-year hold period for AIP compliance
- • Immigration advice strongly recommended
Questions investors ask about our secured lending
A short guide to how Capital Connect deploys capital, protects investor principal, and is structured for wholesale investors. Full terms are set out in the Information Memorandum.
What is Capital Connect and who is it for?
Capital Connect is a New Zealand Limited Partnership that originates and manages secured private credit. It is offered exclusively to eligible wholesale investors as defined under the Financial Markets Conduct Act 2013, and is structured as a NZTE-recognised Acceptable Managed Fund under the Active Investor Plus Growth Category for international investors seeking a credible path to New Zealand residency.
What does the Fund invest in?
The Fund deploys investor capital into secured, short-duration lending facilities for established New Zealand businesses, including working capital facilities, asset finance, and other secured credit products. Every facility is backed by registered security over identifiable New Zealand business and property assets. The Fund does not advance capital against cash flow alone.
How is investor capital protected?
Security is the foundation of every facility we write. Each loan is backed by a multi-layer security structure: a registered General Security Agreement over borrower assets, specific registered security over the collateral backing each facility on the Personal Property Securities Register, director or principal guarantees, and property caveats where real property secures a facility. Facilities are written with conservative loan-to-value ratios, and 100% of facilities are PPSR-registered before any capital is drawn down.
How often are distributions paid?
The Fund targets quarterly income distributions, generated from fixed contractual interest on each deployed facility rather than equity markets or asset speculation. Distribution timing and amounts depend on portfolio performance, borrower repayment behaviour, and prevailing market conditions.
What is the minimum investment and target return?
The minimum investment amount and target return are set out in the Information Memorandum and are available to verified eligible wholesale investors on request. Target returns are indicative only and are not guaranteed. This website does not constitute a Product Disclosure Statement or financial advice.
How long is the holding period?
Investors are subject to a minimum three-year holding period, which aligns with the Active Investor Plus visa programme requirements. Redemptions are available following the AIP holding period and are subject to portfolio liquidity.
Who manages the Fund and how is it governed?
Capital Connect GP Ltd acts as General Partner and Manager of the Fund. Every lending opportunity is assessed through a structured six-stage credit process and must be approved by the Fund's Investment Committee before any capital is committed. Investors receive quarterly reports and annual audited financial statements. The Fund is governed by New Zealand law.
Is this a regulated investment offer?
Capital Connect is offered to wholesale investors under the Financial Markets Conduct Act 2013 and is not required to be registered with the Financial Markets Authority. This website is general information only and does not constitute an offer, a Product Disclosure Statement, or financial advice. Independent legal, financial, and tax advice should be obtained before making any investment decision.
Have a question that isn't covered here? Contact our team to request the Information Memorandum or speak with investor relations directly.
Request the Information Memorandum
The Capital Connect Information Memorandum is available to verified eligible wholesale investors. Contact our team to request the IM and subscription documentation.
AIP Visa EnquiriesTarget returns are indicative only and not guaranteed, and are detailed in the Information Memorandum. Investment available to eligible wholesale investors only. This page does not constitute a Product Disclosure Statement or financial advice.