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NZAngels Halo Fund 1
NZAngels Halo Fund 1
NZAngels Halo Fund 1
NZAngels Halo Fund 1
NZAngels Halo Fund 1
NZAngels Halo Fund 1
NZAngels Halo Fund 1
NZAngels Halo Fund 1
NZAngels Halo Fund 1
NZAngels Halo Fund 1
NZAngels Halo Fund 1
NZAngels Halo Fund 1
NZAngels Halo Fund 1
NZAngels Halo Fund 1
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NZAngels Halo Fund 1

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An overview of the NZVIF's Halo Fund

An overview of the NZVIF's Halo Fund

Published in: Economy & Finance, Business
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  1. Halo No 1 Fund Limited A presentation to investors
  2. <ul><li>This document has been prepared by Halo Investment Management Limited (“HIM”) for information purposes only. No offer of securities is being made by HIM pursuant to this document. </li></ul><ul><li>While all reasonable care has been taken to ensure that the information in this document is accurate, HIM will not be liable for any errors in that information or for any reliance placed on information contained in this document. </li></ul>Halo No 1 Fund Limited Disclaimer Halo No 1 Fund | May 2009
  3. <ul><li>The Halo Fund No 1 provides a passive ‘fund’ approach to Angel investing. </li></ul><ul><li>It gives investors a unique opportunity to gain qualified access in a cost effective manner to a portfolio of over 30 New Zealand early-stage, high growth investments. </li></ul><ul><li>It does so by partnering with New Zealand’s most experienced Angel investors to invest in new technology, high growth companies in high-value sectors like software, bio-technology, niche manufacturing and medical diagnostics. </li></ul><ul><li>The Fund will be a passive investor which invests on a one-to-two basis in deals vetted and approved by the co-investing partners and the New Zealand Venture Investment Fund Limited’s (NZVIF) Seed Co-Investment Fund (SCIF). </li></ul>Halo No 1 Fund Limited The Opportunity Halo No 1 Fund | May 2009
  4. <ul><li>Halo Fund No 1 Limited is structured to qualify as a Portfolio Investment Entity (PIE). </li></ul><ul><li>A minimum of five million shares at an issue price of NZ$1.00 per Share, with provision to issue up to a further five million Shares at NZ$1.00 per Share in oversubscriptions are to be offered to “eligible persons” in terms of the Securities Act 1978 pursuant to an Information Memorandum to be distributed to “eligible persons” only. </li></ul><ul><li>The minimum investment per investor will be 25,000 shares at NZ$1.00 per share (NZ$25,000). An initial subscription of NZ$0.40 per Share subscribed for is paid upon application. </li></ul><ul><li>Further calls to be made over a five year period. </li></ul>Halo No 1 Fund Limited Key Terms of the Fund Halo No 1 Fund | May 2009
  5. <ul><li>The Fund is targeting a portfolio of 30 plus portfolio companies over the five year Investment Period. </li></ul><ul><li>The Fund will co-invest in Eligible Companies in which the SCIF also invests alongside Co-Investors, on a 1:2 basis up to NZ$250,000 per company over a number of rounds. </li></ul><ul><li>The terms are attractive: </li></ul><ul><ul><li>An application fee of 1% over and above the capital committed will be charged. </li></ul></ul><ul><ul><li>Establishment costs of 1% of the committed capital will be charged by the Manager to the Fund. </li></ul></ul><ul><ul><li>No on-going management or performance fees will be charged to Investors. The Manager will charge a transaction fee for all investments of 4% of the amount invested by the Fund at the time an investment is made. </li></ul></ul><ul><ul><li>The Fund will be responsible for meeting all other expenses in relation to the operation of the Fund. </li></ul></ul>Halo No 1 Fund Limited Halo No 1 Fund | May 2009 Key Terms of the Fund
  6. <ul><li>The Fund is being brought to you by New Zealand’s leading early-stage Angel investment groups: </li></ul><ul><ul><li>Upstart Angels, powerHouse Ventures, Venture Accelerator, Manawatu Investment Group, Pacific Channel, ICE Angels, Sparkbox Investments, Cure Kids Venture, New Zealand Diagnostics, New Zealand Venture Investment Fund </li></ul></ul><ul><li>It is these active Co-Investors, comprising many of New Zealand’s leading Angel investors, who will select, undertake due diligence on, invest in and, ultimately, exit individual portfolio companies. </li></ul>Halo No 1 Fund Limited Halo No 1 Fund | May 2009 Key Terms of the Fund
  7. <ul><li>The Manager has outsourced key elements of the Fund: </li></ul><ul><ul><li>NZVIF Limited – The Manager has entered into a services contract with NZVIF, who will provide all secretariat and investment management functions for the Manager. </li></ul></ul><ul><ul><li>Appello Services Limited – The Manager has entered into a services contract with, a specialist registry provider, to provide all registry functions for the Fund. Appello Services is 30% owned by NZX Limited. </li></ul></ul><ul><ul><li>Angel Groups – The primary role of the individual Angel groups is to provide the deal flow for the Fund. They are the active investors who identify, invest in and directly manage the early-stage companies. In addition to this core role they are responsible for managing the relationship relationships with all investors in the Fund. </li></ul></ul>Halo No 1 Fund Limited Professional Management Halo No 1 Fund | May 2009
  8. <ul><li>Angel investing can provide strong returns. Recent United States (US) data suggests returns on group-affiliated Angel investments average to a 2.6x return on investment after 3.5 years (27% IRR). </li></ul><ul><li>However Angel investing is high risk as a significant portion of early-stage investments do not survive. </li></ul><ul><li>A portfolio approach is key to driving returns in Angel Investing. The Funds Portfolio which be over 30 companies. </li></ul>Halo No 1 Fund Limited The Returns Halo No 1 Fund | May 2009 Source: Kauffman Foundation Returns More than 10x 7% 5-10x 6% 1x-5x 32% Negative IRR 52%
  9. <ul><li>To kick-start the Fund, it is negotiating to purchase a 25% interest in the SCIF’s portfolio of investee companies. This purchase will ensure investors are able to access an established portfolio of New Zealand early-stage companies from day one of their investment. Examples include: </li></ul><ul><ul><li>Go Vertical Medical developing and commercialising e-learning systems for clinical procedures. </li></ul></ul><ul><ul><li>Xenos has developed technology for aseptic (sterile) bottling of long-life beverages. The company’s technology allows flexible packaging of long life drinks in glass or plastic. </li></ul></ul><ul><ul><li>Mesynthes have developed and patented a tissue sheet medical device which can be used for wound care and surgery. </li></ul></ul>Halo No 1 Fund Limited What Will be Invested In Halo No 1 Fund | May 2009
  10. <ul><li>The Board of the Fund is responsible for appointing the Manager and monitoring the Manager’s performance </li></ul><ul><li>The Directors have been selected based on their commercial and early-stage investment experience. </li></ul><ul><ul><li>John McDonald Chairman – Over 30 years experience in non executive and management positions. Director of ICE Angels, Air New Zealand Limited and Chairman of Pohutukawa Private Equity Limited. </li></ul></ul><ul><ul><li>Phil Holliday Director - Entrepreneur and investor with over 35 years in the ICT and broader technology industries. Chairman of powerHouse Ventures. </li></ul></ul><ul><ul><li>Dr Norman Evans Director - CEO of Upstart, Director of Dunedin City Holdings Limited, and City Forests Limited. </li></ul></ul><ul><ul><li>Andrew Duff Director - A solicitor and chartered accountant. Chairman of Sparkbox Limited and 2 Ignite Limited. </li></ul></ul><ul><ul><li>Franceska Banga Director - Chief Executive of NZVIF Limited since 2001. Chair of the NZVCA, member of the Capital Markets Task Force. </li></ul></ul>Halo No 1 Fund Limited The Key People Halo No 1 Fund | May 2009
  11. <ul><li>The Fund presents a unique opportunity to gain qualified access in a cost effective manner to a portfolio of New Zealand early-stage, high growth investments. </li></ul><ul><li>Investors will gain immediate exposure to a portfolio of around 20 early-stage companies. </li></ul><ul><li>Company selection is crucial to successful Angel investing. The Fund will be partnering with New Zealand’s most experienced Angel investors to invest in new technology, high growth companies in dynamic, high-value sectors like software, bio-technology, and medical diagnostics. </li></ul><ul><li>All investments made by the Fund will follow a structured process and will rely on the relevant active Co-investor to undertake due diligence on the portfolio company and negotiate and lead the negotiation of commercial terms. </li></ul>Halo No 1 Fund Limited Conclusion and Next Steps Halo No 1 Fund | May 2009
  12. <ul><li>The minimum target size of the Fund is NZ$5 million. </li></ul><ul><li>The minimum subscription is NZ$25,000 with a minimum of NZ$10,000 due on application. </li></ul><ul><ul><li>Offer opens: 18 May 2009 </li></ul></ul><ul><ul><li>Offer closes: 30 August 2009 </li></ul></ul><ul><li>If you are an “eligible person” in terms of the Securities Act 1978, you may request an Information Memorandum. </li></ul>Halo No 1 Fund Limited Conclusion and Next Steps Halo No 1 Fund | May 2009
  13. <ul><li>To invest in the Fund you must be an affiliate of one of the participating Angel groups who will be able to provide you with the Funds Information Memorandum. </li></ul><ul><li>Please contact [email_address] for more information. </li></ul>Contact Details Conclusion and Next Steps Halo No 1 Fund | May 2009
  14. www.halofund.co.nz

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