DFC New Zealand Limited

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.[1]

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.[2]

Under the State Owned Enterprises Act 1986, it was corporatised as DFC New Zealand Limited.[3][1] In 1988 it was sold to the National Provident Fund and Salomon Brothers.[2]

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.[1][2]

A successor of sorts, the New Zealand Venture Investment Fund, was established in 2001.

References

  1. 1 2 3 4 DFC NZ (a cautionary tale of one company's financial failure - Christie Smith, Reserve Bank of New Zealand
  2. 1 2 3 Mike Booker (2009-01-30). "The state of venture capital in New Zealand". Idealog.
  3. ↑ "Development Finance Corporation of New Zealand Act 1986". Parliamentary Counsel Office - New Zealand Legislation.
This article is issued from Wikipedia - version of the 2/9/2015. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.