Capital Management
Fueling Growth Across New Zealand’s Emerging Industries
Our Strategy
By leveraging our deep industry expertise and disciplined financial strategies, we create investment portfolios that grant our investors access to premier private capital funds. Our approach is designed to generate robust, risk-adjusted returns, allowing investors to capitalize on New Zealand’s fastest-growing sectors while ensuring long-term value creation.
Our Approach
1. Sourcing & Origination, Application Submission
We source opportunities through sector networks, partnerships, and proactive research (including forestry and other focus sectors), plus direct inbound applications. Each lead is logged to a pipeline and triaged for basic fit. Applicants must meet predefined eligibility criteria and submit an Application Form with: (i) business details, (ii) financial projections and funding requirements, and (iii) a clear growth plan/use-of-funds. Acknowledgement and a completeness check are issued within a set SLA.
Key inclusions: conflict pre-screen, basic KYC screen, assignment to a lead analyst.
4. Risk Assessment
We formalise a risk-rating with quantified drivers (business, market, financial, legal, ESG). We evaluate risk mitigants, insurance, covenants, security package, step-in rights, and map regulatory requirements (local laws/council rules). Outputs include a downside case, loss-given-default view (credit), and key risk-mitigation actions.
7. Transaction Execution
We execute to a closing checklist: definitive documents, CPs verification, and security perfection (e.g., PPSR registrations, mortgages, GSA, share/security assignments). Funds are released via agreed mechanics (single close or milestone-based drawdowns/escrow). AML/CFT finalisation and use-of-proceeds controls are completed before first draw.
2. Initial Screening
We verify completeness and alignment with fund mandate and investment criteria, filtering out mismatches early. This stage confirms sector fit, scale, competitiveness, and preliminary risk flags. Incomplete files are returned with a clear checklist.
Additions: quick media/adverse-info checks; preliminary ESG materiality mapping; screening memo created.
5. Expert Review Panel
When the internal review process reveals applications that are complex or have significant potential impact, a specialized panel will be assembled. This panel will consist of experts from relevant sectors, alongside specialists in finance, sustainability, and legal fields, to thoroughly assess the application.
8. Post-Approval Monitoring
We monitor performance through scheduled reporting (monthly/quarterly financials and KPIs), covenant testing (e.g., DSCR/LVR), site visits, and ESG/H&S tracking. We re-rate risks periodically, operate a watchlist with remediation plans, and may step in or restructure if triggers are breached. Investors receive concise periodic reports.
3. Detailed Evaluation
We conduct full due diligence across:
Business DD: cash-flow quality, cost structure, unit economics, operational efficiency (incl. site visits and reference calls).
Market DD: positioning, demand drivers, substitution risk, competitive dynamics, and pricing power.
Legal/Regulatory & ESG: compliance review, permits/consents, governance quality, H&S, sustainability metrics.
Financial Analysis: scenarios, sensitivities, stress tests; valuation cross-checks (e.g., DCF/comparables) and security analysis (for credit). Independent third-party reports commissioned where appropriate.
6. Decision-Making
Applications are scored across financial viability, operational capability, sustainability, and risk management. KingsMont reviews the full memo, assigns a risk-adjusted return view (e.g., IRR/MoIC or credit spread/DSCR), and decide to approve / approve with conditions / decline. Conditional approvals proceed via a binding Term Sheet with clear conditions precedent (CPs), security requirements, pricing, covenants, reporting, and ESG undertakings.
9. Exit Strategy
Loan-based investments: scheduled amortisation, balloon at maturity, early-repay incentives, or refinancing; rights to call early or restructure upon default/covenant breaches / material adverse change.
Equity-based investments: trade sale, MBO /shareholder consolidation, secondary sale to institutions, dividend recap/partial buybacks.
Exit options and timing are defined up-front in the term sheet, guided by business performance, market conditions, and capital-recycling priorities, public listings are not a core dependency.
Insights
Career
Join Kingsmont Capital
At Kingsmont Capital Management, we seek skilled professionals with expertise in fund management, investment analysis, and financial strategy.
Join us to collaborate with experienced capital managers, participate in strategic investments, and contribute to our mission of delivering sustainable financial solutions. Explore current opportunities and embark on a rewarding career path with us.
