Active Investor Plus Visa — How the Capital Connect Fund Fits In

Capital Connect No.1 LP is recognised by New Zealand Trade and Enterprise (NZTE) as an Acceptable Managed Fund under the Active Investor Plus (AIP) Growth Category. For international investors exploring the pathway to New Zealand residency, this matters — and it is worth understanding exactly how the fund fits within the programme requirements.

What Is the Active Investor Plus Programme?

The Active Investor Plus visa is New Zealand's primary residency pathway for high-net-worth international investors. Unlike passive investment schemes, the AIP programme requires applicants to deploy capital into categories of investment that are considered genuinely productive for the New Zealand economy.

There are two investment categories under the programme:

• Growth Category: Higher-risk, higher-engagement investments including venture capital, listed equities, and NZTE-recognised managed funds. Minimum investment of NZD 5 million for a three-year hold.
• Balanced Category: A mix of growth and passive investments. Minimum NZD 10 million.

Capital Connect No.1 LP sits within the Growth Category as a recognised managed fund.

Why Private Credit Qualifies

Not all managed funds qualify under the AIP programme. NZTE assesses funds against criteria designed to ensure investor capital is actively contributing to the New Zealand economy — supporting businesses, creating employment, and building productive capacity.

Capital Connect No.1 LP qualifies because it deploys capital directly into established New Zealand SMEs and property-related sectors through secured lending facilities. The borrowers are operating New Zealand businesses. The capital funds real economic activity — equipment, working capital, property development — not offshore assets or passive financial instruments.

Fund Structure for AIP Investors

Capital Connect No.1 LP is structured as a New Zealand Limited Partnership. Key terms for AIP investors:

• Minimum Investment: NZD 1,000,000 (the full NZD 5 million AIP requirement can be met through a combination of eligible investments)
• Target Return: 5–7% pa net of fees (indicative, not guaranteed)
• Distributions: Quarterly
• Minimum Hold: Three years (aligned with the AIP visa requirement)
• Investor Type: Wholesale investors under the FMCA 2013
• Security: Every facility asset-backed against identifiable New Zealand assets

How It Differs from Capital Connect No.2 LP

Capital Connect operates two funds with meaningfully different profiles:

| | No.1 LP | No.2 LP | |---|---|---| | Primary audience | International AIP visa applicants | NZ resident wholesale investors | | Minimum investment | NZD 1,000,000 | NZD 100,000 | | Target return | 5–7% pa net | 9–11% pa net | | Distributions | Quarterly | Monthly | | Minimum hold | 3 years (AIP requirement) | 12 months | | NZTE recognised | Yes — Growth Category | No |

Both funds deploy capital through the same secured lending strategy and credit process. The difference lies in the investor profile, return profile, and fund terms — not in how capital is protected.

Important Considerations for AIP Applicants

The AIP visa programme involves complex immigration law requirements that go beyond the fund structure itself. Before investing:

• Obtain independent immigration advice from a licensed New Zealand immigration adviser or solicitor familiar with the AIP programme.
• Confirm your eligibility as a wholesale investor under the FMCA 2013 — AIP investors must also meet this requirement.
• Understand the full investment requirement — the NZD 5 million Growth Category requirement may be met through a combination of eligible investments, not solely through Capital Connect No.1 LP.
• Review the Information Memorandum — available to verified eligible investors on request from Capital Connect.

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This article is general information only and does not constitute financial advice or immigration advice. Capital Connect No.1 LP is available to eligible wholesale investors only as defined under the Financial Markets Conduct Act 2013. Investment in managed funds involves risk. Target returns are indicative only and not guaranteed. Independent legal, financial, tax and immigration advice should be obtained before making any investment or visa application decision.