Intelligent private credit for New Zealand SMEs.

Private credit is lending provided directly by a specialist fund to established businesses, rather than through a bank or the public bond market. Borrowers draw on the capital they need, and investors in the fund earn income from the interest those borrowers pay. It is a long-established asset class internationally and one that is expanding in New Zealand.

A bank lends out money that has been deposited with it, while a bond is a security that trades on public markets. Private credit sits between the two: each loan is negotiated directly with the borrower, held by the Fund rather than publicly traded, and actively managed by a specialist team. This structure can offer investors attractive risk-adjusted income while giving borrowers more tailored terms.

Tighter capital rules and more conservative lending criteria have made it harder for many well-run New Zealand businesses to obtain bank funding on suitable terms. Specialist lenders such as Runway help meet that demand, and borrowers increasingly value the responsiveness and sector understanding that a private credit provider can bring.

It means the Fund's loans are backed by real collateral — typically first-ranking security over a borrower's assets, specific asset security, and personal or corporate guarantees where appropriate. If a borrower is unable to repay, this security gives the Fund a priority claim ahead of the business's owners.

Private equity involves taking an ownership stake in a business, so returns depend on the value of that business. Private credit involves lending to a business and earning contracted interest together with repayment of the loan. Returns are income-driven and more predictable, and the Fund does not take an ownership share in the borrower.

Investors often use private credit to lift the yield of a fixed-income allocation or to diversify away from listed shares and bonds. Because returns come from contracted interest rather than market sentiment, the asset class tends to behave differently from public markets. The main trade-off is liquidity: loans are generally held to maturity and cannot be readily sold.

The Fund is a New Zealand limited partnership managed by Runway Limited. It provides secured private credit to established New Zealand SMEs, giving wholesale investors exposure to a diversified portfolio of secured loans originated and serviced through Runway's lending business.

Runway Limited acts as General Partner and manager. Runway originates, assesses and services the underlying loans through its lending business, and all lending decisions are subject to Investment Committee approval.

The Fund is supported by a defined governance framework. Lending is approved by an Investment Committee, a Limited Partner Advisory Committee provides oversight of conflicts and reserved matters, and an independent administrator and auditor support the integrity of the Fund's reporting. Full details are set out in the Fund documents.

Lock Finance Limited is an established New Zealand business finance and invoice finance lender that has operated since 1889. Runway acquired Lock Finance on 1 April 2026 as the foundational lending business for its SME private credit strategy, and it is now wholly owned by the Manager. The Fund is established alongside this operating lender rather than being launched from a standing start.

Because the Fund's strategy does not depend on a new manager building origination, underwriting and servicing capability from scratch. Lock Finance brings an established SME lending book, long-standing broker, adviser and customer relationships, experienced staff and documented lending processes, a proven invoice finance servicing capability, and a long-run dataset of customer conduct and portfolio performance. Runway intends to preserve this credit discipline and operating knowledge while adding institutional governance, broader capital capacity, wider products and technology-led improvements.

Lock Finance has operated a conservative, relationship-managed SME lending book, with invoice finance as its core product. The book proved resilient through the COVID-19 period, when it was run down without material impairment as invoices were collected. Historical performance is not a guarantee of future results.

It gives the Fund immediate exposure to a seasoned, performing SME loan book from day one, rather than an undeployed blind pool while a new portfolio ramps up; a pipeline of larger opportunities, where loans that meet Runway's credit policy but exceed Lock Finance's own capacity can be referred to the Fund; growth potential, as Lock Finance broadens its products and lending channels under Runway's ownership; and a potential additional source of liquidity.

Potentially. Because Lock Finance is a growing, related-party operating lender under Runway's ownership, it may in principle purchase eligible loans from the Fund at par. This gives the Fund a potential secondary source of liquidity that most standalone New Zealand private credit funds do not have. It is a potential backstop only, not a guarantee: any purchase would be subject to Lock Finance's own capacity and appetite, arm's-length pricing, and Limited Partner Advisory Committee governance where relevant.

The AIP visa is New Zealand's residency-by-investment programme (sometimes called the “Golden Visa”), aimed at individuals who wish to obtain New Zealand residency by investing in the New Zealand economy through approved investments.

There are two pathways. The Growth Category requires a minimum investment held for at least three years in approved managed funds or direct investments, while the Balanced Category requires a larger investment held over a longer period across a broader range of assets. Investors should confirm the current settings and thresholds with a licensed immigration adviser, as policy can change.

The Fund is an eligible investment for the Growth category of the AIP visa. Investors should still obtain independent immigration advice because eligibility depends on each investor's circumstances and applicable policy settings.

No. Any approval is a compliance check against the AIP visa criteria — it is not an endorsement of a fund's commercial merits or its future performance, and visa applications are assessed separately. Prospective AIP investors are encouraged to obtain their own independent immigration and financial advice.

The Fund is a closed-ended structure with only limited discretionary redemption, so investors should expect to remain invested for the intended Fund term.

The Fund is a New Zealand limited partnership — a well-understood structure in the New Zealand private markets context. See “For overseas investors” for how this is generally treated for New Zealand tax purposes.

The Fund targets a minimum return of 4.50% over BKBM, net of fees and Fund costs, before tax. This is a minimum targeted return only and is not guaranteed.

The Fund's lending is generally priced as a margin over BKBM, the publicly available New Zealand inter-bank reference rate. Because pricing floats with the reference rate, investor income tends to move in line with market interest rates, which helps avoid the duration risk associated with fixed-rate instruments.

Distributions are intended to be paid quarterly, subject to liquidity, reserves and General Partner discretion. Income is expected to come primarily from interest earned on the Fund's secured lending portfolio.

The Fund charges a management fee of 0.90% per annum of Invested Capital. The Fund may also bear certain Fund expenses and transaction-related costs, as described in the Information Memorandum.

No. The Fund does not charge a performance fee.

The Fund is available to Wholesale Investors only, as defined under the Financial Markets Conduct Act 2013. Admission is subject to the eligibility requirements in the Information Memorandum and completion of subscription, AML/CFT and KYC requirements.

The minimum investment amount and holding period are set out in the Information Memorandum and subscription documents. As a closed-ended fund, investors should plan to hold their investment for the intended term.

Withdrawal rights are limited and any redemption is at the discretion of the General Partner, subject to the Fund's available liquidity and reserves. The specific process is set out in the Fund documents.

Interests in the Fund are not publicly traded and there is no external secondary market. Any transfer of an interest is subject to the terms of the Limited Partnership Agreement. Investors should refer to the Fund documents for details.

The Fund invests in secured private credit to established New Zealand SMEs, across invoice finance, asset-backed and cash-flow revolving credit facilities, and term / asset-backed term loans. The portfolio is intended to be diversified by borrower, sector and exposure limits.

The Fund has a capital-preservation focus and typically lends on a secured basis, supported by first-ranking security, specific security and personal guarantees where appropriate. Credit assessment, concentration limits, covenants and active monitoring are also used, but investment risk and the risk of loss remain.

All lending opportunities are assessed using Runway's credit process and are subject to Investment Committee approval. The process focuses on disciplined underwriting, security, repayment capacity and ongoing monitoring.

Loans are actively monitored throughout their term using financial covenants, concentration limits and regular review, which are designed to identify any borrower underperformance early so it can be addressed.

Key risks include borrower default risk, concentration risk, liquidity risk, operating and servicing risk, and general investment risk. Investors should also note that target returns are not guaranteed and that withdrawal rights are limited.

Investors will receive regular reporting on Fund performance, the loan portfolio, valuations and distributions. The Fund also uses an independent administrator and auditor to support reporting integrity.

The Fund has governance processes to identify and manage conflicts, including oversight by the Limited Partner Advisory Committee for certain conflicts and reserved matters. Investors should refer to the Fund documents for full details.

The process is to contact Runway or your New Zealand wealth adviser, confirm your wholesale investor status, review the Information Memorandum, and then complete the subscription and AML/CFT documentation. The Runway team can guide investors through the next steps.