Pacific Channel Fund V (Renewable Energy)
Backing New Zealand’s Clean Energy Future
Pacific Channel has established Fund V - a Renewable Energy Development Fund to support the continuation of early-stage development of large-scale renewable energy and storage infrastructure across New Zealand.
This Fund offers an opportunity to invest at seed stage into ongoing projects led by Kākāriki, a joint venture formed by experienced operators including Energy Estate, Elemental Group, Regener8 Power, and Tāmata Hauhā. Kākāriki is advancing a national portfolio of wind, solar, storage, and e-fuels projects located near industrial centres and future energy-intensive users.
New Zealand’s electricity market is under pressure. A clear generation shortfall is forcing reliance on temporary coal and gas solutions, even as demand is set to surge from population growth, EV adoption, and industrial decarbonisation.
Despite a flood of speculative project announcements, only a handful have advanced to committed status, leaving a gap between ambition and delivery. Fund V addresses these issues by investing to the ready to build stage in Kākāriki’s diversified pipeline of large-scale renewable energy projects, governed by robust oversight and structured to provide risk mitigation through the provision of debt and investor upside through equity ownership.
Our Partnership with Kākāriki
Kākāriki Renewable Developments (KRD) is a specialist vehicle for developing and advancing renewable energy projects to the ready to build stage, backed by experienced operators including Energy Estate, Elemental Group, Regener8 Power, and Tāmata Hauhā. Together they bring decades of experience delivering solar, wind, and energy storage projects across global markets. KRD hold a strong pipeline of New Zealand renewable energy projects and have a proven track record of successful exits globally.
To learn more about Kākāriki’s portfolio of renewable energy and storage projects, and development approach, visit kakarikirenewables.com
How it works:
Investors invest into Fund V
For each project Fund V loans development capital in return for:
i. 8% interest on loan p.a
ii. 20% equity stake in the project
The reason why Fund V invests through a loan is to enhance capital protection. This approach ensures that, in the event a project underperforms, the Fund is repaid in priority before any shareholder. Conversely, for successful projects, the Fund expects to realise multiples of its investment through its equity stake, capitalised interest and loan recovery.
Project gets sold, and as this happens Fund V will receive:
• Repayment of loan amount
• Payment of 8% interest p.a. on loan
• 20% equity share of residual cashflows from sale
As capital flows into Fund V again, money will get paid back to investors, by:
• Payment 1: Returning investors initial capital
• Payment 2: Payment of 8% IRR to investors
• Payment 3: Distribution of 80% of net proceeds remaining after repayment of investors’ contributed capital and payment of the 8% IRR”
To explore this unique investment opportunity, please contact:
Richard Pinfold
richard@pacificchannel.com
+64 204 144 5450
The information on this website has been prepared by Pacific Channel Limited (“Pacific Channel”) for general information purposes only. It does not constitute an offer of financial products and should not be relied upon as investment advice. Any person considering an investment must undertake their own independent investigation and seek professional advice. Any future offer of financial products will only be made to persons who do not require disclosure under Part 3 of the Financial Markets Conduct Act 2013 (“FMCA”) (including under Schedule 1 exclusions) or to whom disclosure is otherwise not required. This information is not a product disclosure statement under the FMCA and is not an offer or invitation in any jurisdiction where such offers or invitations are not permitted by law. Investment decisions will only be made on the basis of formal fund documents (including a Limited Partnership Agreement). Pacific Channel makes no representation or warranty as to the accuracy, reliability, completeness, or currency of the information provided on this website, including any forward-looking statements.
