Avanti raises $50 million for expansion

The firm has raised $50 million in new capital from investors including direct investment fund Te Puia Tāpapa.

Te Puia Tāpapa is made up of 26 iwi and Māori entities, established with the intent of protect, grow and diversify their asset base.

The new funds will boost Avanti's capital base and ability to lend, amid a rise in non-bank business since the Covid crisis. 

Lenders including Avanti report an uptick in customers turned away by the banks following the pandemic, and have built on their already growing market share.

Avanti's head of sales Stephen Massey said the fundraising was unique.

“During COVID, we reviewed our strategy with input from our key shareholders and, while we all acknowledge some of the challenges in front of us, we have strong belief in our direction and opportunities in the NZ market.”

“It has been really pleasing to see both existing and a number of new shareholders share that belief and committed their investment funds to support us” Massey added. 

Avanti has also now completed its third term out of the past three years, worth $250 million.

A term out is a transfer of debt to external investors, which frees up lenders to improve working capital and take advantage of lower interest rates. 

Avanti said the term out, worth $250 million, demonstrated "strong appetite for Avanti’s good quality non-bank residential-backed mortgage securities".