Often time sovereign funds allocate capital within their home markets. Positive externalities include local job creation and higher tax revenue for the government. In terms of small to medium-sized businesses, they tend to generate a significant portion of a country’s gross domestic product.
Being a cornerstone investor, the New Zealand Superannuation Fund (NZSF) committed NZ$ 40 million to a new expansion fund managed by Auckland-based Pioneer Capital. Pioneer Capital’s second fund will target private-owned, small to medium-sized New Zealand businesses that plan to expand into international markets. The fund capital will target exporters that need expansion capital in the NZ$ 10 to 30 million range.....................................Full Article: Source
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