Rātā Foundation (Rātā) and Alvarium Wealth today announced that Rātā has acquired a 25% of Alvarium Wealth Management Holdings, the entity which owns Alvarium Wealth and Pathfinder.

The transaction delivers against the strategic goals of both organisations: for Rātā to expand direct investment and co-investment in pursuit of strong financial returns and positive community outcomes; for Alvarium to continue to diversify and grow, expand its South Island presence, and partner with community-based organisations and Iwi to deliver values-aligned returns.

Alvarium and Pathfinder are active fund managers with an intergenerational and collective well-being focus. Rātā is the South Island's most significant community investment fund, managing a $700 million pūtea that generates around $26 million per annum to invest in its funding regions of Canterbury, Nelson, Marlborough, and the Chatham Islands. 

Rātā Chief Executive Leighton Evans and Pathfinder Chief Executive and Alvarium shareholder John Berry said there was clear values alignment between the two organisations, including a strong commitment to delivering impact back into communities through best-in-class wealth management.

"Rātā has allocated 30% of our investment portfolio to direct investment. The Alvarium investment marks the first direct shareholding for Rātā in a private New Zealand company," Mr Evans said. 

The Alvarium shareholding brings the level of direct investments for Rātā to 9.3%.

“Rātā will continue to actively seek direct investment opportunities that offer enduring and sustainable revenue through highly responsible means, with the end goal of increasing the funds we have available for allocation in our communities. 

“In line with its strategic goals, our private market strategy will bring us closer to our investments, ensuring a clearer alignment between our purpose and the funds we manage.

“Rātā aims to take a leadership and advocacy role in ethical investment, a sector where we also see potential for excellent growth,” Mr Evans said.

John Berry said the transaction supported the organisation’s strategic goal of continuing rapid growth in areas where it can maximise its social and economic contribution.

“Alvarium and Pathfinder have a respected and talented team of wealth management professionals. This transaction demonstrates the opportunity to expand our offer and directly support community organisations in the management of their resources.”

“The South Island has been an important part of the genesis of Alvarium and we are excited about actively supporting the aspirations of South Island communities and growing our South Island presence,” Mr Berry said.

Ben Gough, MD and founder of Gough Investments, a cornerstone investor of Alvarium, said Gough Investments was very happy to be working closely with Rātā. 

“Inside the Gough Family Office, we are passionate about supporting and growing wider Canterbury and South Island businesses and communities. We are delighted to be joined by such an aligned organisation as Rātā and to bring our collective skills and networks to growing the Alvarium and Pathfinder businesses,” he said.

“Pathfinder is an excellent fit for Rātā as its investment approach is founded on a respect for people, animals, and the planet, so it matches our strong commitment to ethical investment and our purpose to help create an equitable and sustainable society,” Mr Evans said. 

John Berry echoed this sentiment. "We see this investment as an exciting growth opportunity for both organisations and welcome the substantial mana that having Rātā as a shareholder brings. Rātā Foundation's work, mission, and values are closely aligned with ours at Pathfinder, as we remain committed to generating both individual wealth and collective wellbeing for Kiwi."

Mr Evans said, “We believe there is potential growth through the provision of KiwiSaver and managed funds for investors who want to see their returns underpinned by values. Our investment recognises the potential for fund managers like Pathfinder to increase market share as more Kiwi support ethical investment.

“Through the investment diversification we are now pursuing, Rātā Foundation anticipates growing its assets further, increasing average annual returns and providing a greater proportion of funding for allocation to communities in our regions,” Mr Evans said.  

After a recent performance review of Rātā Foundation’s Trans-Tasman equity mandate, it invested $10 million in Pathfinder’s Trans-Tasman Equity Fund, separate from the transaction announced today.

About Rātā Foundation

Over the last 37 years, Rātā Foundation has provided nearly $600 million in social impact to community organisations across its funding regions of Canterbury, Nelson, Marlborough, and the Chatham Islands.

The long-term strategic objective of Rātā is to invest in communities to enable a higher standard of community well-being. We intend to grow our investment portfolio so that we can increase our long-term funding distribution.

For more information on Rātā Foundation’s investment strategy, including its target for the risk-adjusted returns on its direct investment and sectors favoured for direct investment, see the newly launched Rātā Invest website.

For more information on the purpose of Rātā Foundation and the social impact provided through community investment please visit https://ratafoundation.org.nz/

About Alvarium 

Alvarium is an integrated wealth management and advisory company with relationships at its heart. 

Alvarium specialises in building and maintaining client wealth through tailored insights and access to a unique ecosystem of domestic and international investment products and opportunities.

Alvarium is focused on delivering bespoke advice and quality performance for a wide range of clients, from families, to foundations, to founders of high-quality growth companies. The company has a number of investment funds, including Pathfinder, as well as access to real estate funds and direct investments.

Contacts for Media:

Rātā Foundation

Tarns Bethell

Strategic Communications Manager

m:027 602 7023

e-mail: tanya.bethell@ratafoundation.org.nz

Alvarium 

Jonathan Hill

021 440 090