Sharechat Logo

Tindall's K1W1 lends $1.5M to Simplicity to repay Stubbs debt, fund growth

Monday 8th April 2019

Text too small?

Warehouse founder Steven Tindall's K1W1 investment vehicle is lending $1.5 million to fund manager Simplicity NZ, to repay money owed to founder Sam Stubbs and help cover the firm's expansion. 

Stubbs loaned Simplicity $900,000 on an interest-free basis when he set up the not-for-profit fund manager and committed to provide more support if needed if Simplicity couldn't pay its bills until at least July 31 of this year. Of the loans, some $300,000 had been due on March 29 this year, with the balance to be repaid on July 30, 2021, the firm's 2018 accounts show. The loans' fair value was assessed at $647,000. 

Simplicity had $142,000 in cash and equivalents as at March 31, 2018, and was generating positive cash flow by July last year, which Stubbs has said made a huge difference for the fund manager.  

The firm today said K1W1's debt facility will be used to repay existing debt, grow its core business, and expand into other financial services.  

"Stephen is one of our heroes, and there is no finer supporter of what we want to do for ordinary Kiwis," Stubbs said. "This will allow us to grow faster, and explore providing other services."

The National Business Review reported Tindall's financial backing for Simplicity in February.

Simplicity has positioned itself as a challenger model, offering discount fees by using Vanguard funds to track the major indices and replicating the asset portfolios of the large schemes for direct investments.

Since it was set up in 2016, the fund manager has attracted more than 22,000 investors, with $750 million of funds under management. 

Tindall has also agreed to become the patron of the Simplicity Charitable Trust, which receives 15 percent of the fund manager's management fees to donate to a range of charities. 

“I think the Simplicity Charitable Trust will become a significant player in philanthropy, and I see a lot of synergies between what they’re aiming for and what the Tindall Foundation wants for NZ," Tindall said. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar weakens on global tensions, weak local manufacturing
General Capital (GEN:NZ) releases strong preliminary result
Burger Fuel turns to profit as it changes direction
Contact secures winter gas from OMV
Arrow International liquidators find $40M of notional assets
Forestry encroachment an issue for councils - Sage
NZSA concerned Kiwi Property paying too much in dividends
NZ food prices rise an annual 1.7% in May, rental inflation steady
Provincial centres lead the way in UFB uptake
Manufacturing grows at slowest pace in more than six years

IRG See IRG research reports