Investment Glossary
Learn key terms and concepts for wholesale investing in New Zealand. Understanding these fundamentals will help you evaluate investment opportunities.
Investor Types
Wholesale Investor
Investor meeting FMCA criteria for wholesale access
Eligible Investor
Investor certified by a financial advisor (s38-40 FMCA)
Retail Investor
Default category — full FMCA Part 3 disclosure protections
Sophisticated Investor
Non-statutory term overlapping the eligible-investor pathway
Institutional Investor
NZ Super, ACC, KiwiSaver managers, insurers
Family Office
Private vehicle managing UHNW family wealth
Accredited Investor (US)
US SEC Rule 501 — NOT a formal NZ classification
Fund Structures
PIE Fund
Tax-efficient Portfolio Investment Entity
Limited Partnership
Flow-through tax structure common in PE/VC
Managed Investment Scheme
Collective investment vehicle under FMCA Part 4
Unit Trust
Trust + supervisor structure common in NZ credit funds
Syndicate
Pooled investors owning a specific property or asset
Closed-End Fund
Fixed pool with vintage subscription window
Open-Ended Fund
Continuous subscription + redemption with NAV pricing
Evergreen Fund
Open-ended fund with no planned wind-down date
GP / LP Structure
General Partner manages; Limited Partners passive
Carried Interest
GP's 20% share above the hurdle rate
Waterfall Distribution
Sequential order of fund payouts
Asset Classes
Private Credit
Non-bank lending to businesses and developers
Venture Capital
Investment in early-stage, high-growth companies
Private Equity
Investment in established private companies
Senior Secured Debt
First-rank secured loans (typically first mortgage)
Mezzanine Debt
Subordinated debt — higher yield, higher risk
Subordinated Debt
Debt ranking behind senior in repayment
Preferred Equity
Equity with priority above common but below debt
Bridge Finance
Short-term lending to a defined exit event
Development Finance
Construction-phase property debt
Co-Investment
LP investing alongside the fund in a specific deal
Financial Metrics
IRR
Internal Rate of Return — annualized return metric
LVR
Loan-to-Value Ratio — lending risk measure
First Mortgage
Senior secured property lending
MOIC
Multiple on Invested Capital — money multiple
TVPI
Total Value to Paid-In — fund return measure
DPI
Distributions to Paid-In — realised cash returns
RVPI
Residual Value to Paid-In — unrealised NAV
Yield to Maturity
Bond return if held to redemption
Net Asset Value (NAV)
Fund assets minus liabilities, per unit
Risk Concepts
Regulatory + Disclosure
FMA
Financial Markets Authority — NZ regulator
FMCA 2013
Financial Markets Conduct Act — primary statute
FSP Register
Public register of financial service providers
NZBN
New Zealand Business Number — universal identifier
Disclose Register
Public register of retail offer documents
AML/CFT Act 2009
Anti-money-laundering obligations
PDS
Retail offer disclosure document
Information Memorandum (IM)
Wholesale offer disclosure document
SIPO
Statement of Investment Policy and Objectives
AIP Visa + Tax
AIP Visa
Active Investor Plus immigration pathway
AIP Growth Category
NZ$5M / 21 days / 3 years
AIP Balanced Category
NZ$10M / 105 days / 5 years
NZTE Acceptable Funds
Pre-approved list for AIP
Transitional Resident
First-time arrival 48-month s HR 8 exemption
FIF
Foreign Investment Fund — tax on offshore equity above NZ$50K
PIR
Prescribed Investor Rate for PIE taxation
Tax Structure
PIE vs LP vs trust — flow-through choice
KiwiSaver
Voluntary NZ retirement scheme (retail tier)
All Terms A-Z
Ready to Invest?
Now that you understand the terminology, explore wholesale investment opportunities.
Educational Content Disclaimer
This glossary provides general educational information only and does not constitute financial, legal, or tax advice. Definitions are simplified for educational purposes.
Before making any investment decision, you should seek independent advice from appropriately qualified professionals.