Appendix 15 - Criteria for managed funds and direct investments

1. Invest New Zealand (Invest NZ) maintains a list of managed funds in accordance with the criteria set out below.
2. Invest NZ will determine if an investment into a New Zealand resident entity is a direct investment in accordance with the criteria set out below.
3. A business immigration specialist should rely on:
   1. the list of managed funds maintained by Invest NZ as evidence of whether or not the managed fund is an acceptable investment under managed funds (see BN7.10.10); and
   2. a letter from Invest NZ as evidence of an acceptable direct investment (see BN7.10.15), for either:
      • investment in an Investee Entity; or
      • investment in acceptable listed equities as a Wholesale Investor.

Note: Invest NZ may revoke a managed fund and/or direct investment’s acceptable investment status if in its reasonable opinion the investment opportunity no longer meets the acceptability criteria set out in immigration instructions (BN7.10 and Appendix 15).

Definitions

1. Unless the context requires otherwise:

Debt Security has the meaning given to that term in the FMCA.

Equity Security means:

1. a share in a company; or
2. an equivalent interest in a body corporate, but

does not include a Debt Security.

Financial Product has the meaning given to that term in the FMCA.

FMCA means the Financial Markets Conduct Act 2013.

Investment authority has the meaning given to that term in the FMCA.

Investee Entity means a body corporate that:

1. is a New Zealand Resident Entity; and
2. is not listed on any securities exchange or stock exchange.

Managed Investment Scheme has the meaning given to that term in the FMCA.

Managed Investment Product has the meaning given to that term in the FMCA.

Net Committed Capital means the total funds committed to the Managed Investment Scheme, minus the anticipated fees, obligations, expenses and liabilities to be incurred by the relevant Managed Investment Scheme.

Entity means any company, limited partnership, body corporate or other similar entity wherever formed or established.

New Zealand Entity means an Entity which (itself and/or through any of its subsidiaries, as the case may be), at or immediately following the time of initial investment, has:

1. the majority of its full-time employees and independent contractors (by number) in New Zealand or the main operations based in New Zealand; and
2. one or more of the following:
   1.  its shareholder (or equivalent) voting control held by one or more New Zealand residents (as defined for tax purposes); or
   2.  New Zealand residents (as defined for tax purposes) as the majority of its senior leadership team; or
   3. its headquarters in New Zealand.

New Zealand Resident Entity has the meaning given to that term in BN7.10.20 of the Immigration New Zealand Instructions for the Active Investor Plus visa.

Objective means the objective of the Active Investor Plus visa as set out in BN1 of the Immigration New Zealand Instructions for the Active Investor Plus visa.

Principles means the principles for assessing whether direct investments or managed funds are acceptable investments, being investments that:

1. clearly contribute to the Government’s economic strategy, by being invested into one of the following businesses or projects which will deliver economic and other positive impacts for New Zealand (either as direct investments or through a managed fund):

1. businesses whose business model does not involve acquisition or ownership of property; or
2. businesses or projects that depend on property to deliver their business model, including but not limited to any of the following sectors*:

• technology;
• manufacturing;
• food and beverage;
• renewable energy;
• aged care;
• primary sector such as horticulture (including post-harvest infrastructure), forestry, agriculture, or aquaculture; or
• infrastructure (including tourism, transport, digital, health, education and public infrastructure)

*Invest NZ will consider the inclusion of businesses or projects that sit in other sectors that add value to the New Zealand economy. For the avoidance of doubt, investments into pure property assets or projects other than infrastructure (for example: commercial, residential or industrial real estate) will not be considered acceptable investments under the Growth Category (managed funds or direct investments).

1. is into legitimate Investee Entities or managed funds and proper verification is conducted to ensure this¹;
2. does not prejudice New Zealand’s reputation as a responsible member of the world community².

Wholesale Investor has the meaning given to it in the FMCA.

¹For the avoidance of doubt, this is not a test of the Investee Entity or managed fund’s financial health and growth potential, which is for the principal applicant to ascertain.

²A list will be published (and updated from time to time) of business activities that may prejudice New Zealand’s reputation as a responsible member of the world community.

Managed funds

Criteria for acceptable managed funds

2. A Managed Investment Scheme is an acceptable managed fund if Invest NZ is of the view that:

2.1 it is managed by a fund manager and/or general partner that is appropriately registered and is a New Zealand Resident Entity;

2.2 it will hold funds on the principal applicant’s behalf in New Zealand and in New Zealand dollars;

2.3 it invests:

• wholly or substantially in New Zealand Entities; and/or
• in managed funds that meet the criteria in paragraph 2.1 to 2.4 of this Appendix (whether or not such managed funds have applied to be acceptable managed funds),

In each case which meet the Objectives and Principles, and which are not quoted on any securities exchange or stock exchange. For the purposes of this provision, "substantially invested in New Zealand Entities " means where a minimum of 70% of the initial Net Committed Capital made available to the Managed Investment Scheme that is not allocated for investment in managed funds is allocated for investment in New Zealand Entities; and

2.4 it otherwise meets the Objectives and Principles.

Managed funds list

3. Invest NZ will from time to time publish a list of acceptable Managed Funds.

Direct investments

Criteria for acceptable direct investments

4. An investment in listed equities that is considered an acceptable investment under BN7.10.15(a)(i) of the Immigration New Zealand Instructions for the Active Investor Plus visa is an acceptable direct investment if Invest NZ is of the view that:

4.1 there is a separate wholesale offer in respect of the investment through which the principal applicant (or a trustee or nominee to the extent permitted by BN7.10.15(a)(iii)) will invest as a Wholesale Investor; and

4.2 the investment is an acceptable direct investment, and Invest NZ confirms this in writing prior to an investment being made by a principal applicant.

5. An Investee Entity is an acceptable direct investment if Invest NZ confirms in writing prior to investment that it is of the view:

5.1 that the Investee Entity has previously received capital, or has genuine investment interest from:

• an acceptable managed fund; and/or
• a third party Wholesale Investor that is appropriately registered; and/or
• a principal applicant; and

5.2 that the investment is otherwise acceptable as a direct investment.

6. In exercising its discretion under paragraphs 4 and 5, Invest NZ must have regard to:

6.1 whether economic and other positive impacts to the New Zealand economy will flow directly from the direct investment, through increases in economic output and may also take into consideration any of the following factors:

• creation or saving of jobs; or
• increases in productivity and/or productive assets; or
• investment into intangible assets (e.g. research and development or other intellectual property); or
• other economic, social or environmental impacts;

6.2 where the direct investment relates to a "start-up" entity or "greenfield" project, whether evidence of market validation, feasibility or other reasonable diligence has been provided, including (but not limited to):

• milestones from inception to the start-up or greenfield project being commercialised; and
• details of work undertaken in relation to technical, research and development, economic, market, legal and regulatory aspects of the start-up or greenfield project; and

6.3 whether the direct investment otherwise meets the Objective and Principles.

Effective 04/12/2025