DFC New Zealand Limited explained

DFC New Zealand Limited was a state-owned enterprise that existed from 1964 to 1991, to provide venture capital and financial advice to industry.

History

The Development Finance Corporation was established in 1964 as a joint venture between the New Zealand Government, the Reserve Bank of New Zealand, and the major trading banks of the time.[1] In 1973, the Kirk Labour government assumed full control.

DFC operated two venture capital funds: the Applied Technology Programme and the Small Business Venture Capital Fund, which were both later merged into a single DFC Ventures fund.

Under the State Owned Enterprises Act 1986, it was corporatised as DFC New Zealand Limited.[2] In 1988 it was sold to the National Provident Fund and Salomon Brothers.[3]

DFC New Zealand Limited was placed into statutory management in 1989 and liquidated in 1991, after ill-fated investments in property speculation saddled it with a mountain of bad debts.[4]

A successor of sorts, the New Zealand Venture Investment Fund, was established in 2001. Another, the Provincial Growth Fund, followed in 2017.

External links

Notes and References

  1. http://nzae.org.nz/wp-content/uploads/2011/Session4/44_Smith.pdf DFC NZ (a cautionary tale of one company's financial failure - Christie Smith, Reserve Bank of New Zealand
  2. Web site: Development Finance Corporation of New Zealand Act 1986. Parliamentary Counsel Office - New Zealand Legislation.
  3. Web site: The state of venture capital in New Zealand. Mike Booker. Idealog. 30 January 2009. 7 February 2015. https://web.archive.org/web/20150207052101/http://idealog.co.nz/venture/2009/01/show-us-the-money. 7 February 2015. dead.
  4. Web site: Banking crises in New Zealand – an historical overview. 29. Chris Hunt. 17 June 2009. Reserve Bank of New Zealand.