The New Zealand Superannuation Fund is planning to invest about $40 million in a new $150 million venture capital fund that will provide capital to small and medium sized firms that have the potential to succeed in the global economy.

The fund invests to finance New Zealand's universal state pension for the people. The fund will invest its capital in Auckland-based Pioneer Capital, that has made investments in software company SLI Systems, boutique brewer Moa beer and health system software developer Orion Health.

the latest fund will be a second fund for the Pioneer Capital and will be known as PCPII. It is aiming to invest $150 million in growing SMEs that are looking enter the international markets. It will make an average investment of between $10 million and $30 million.

"There is a significant pool of smaller, high-growth companies in New Zealand that can potentially provide attractive investment opportunities to long-term investors such as the Fund," says Matt Whineray, the super fund's general manager for Investments.

PCPII will also include investments from other New Zealand institutions, private investors and the Pioneer Capital.