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Stephen Tindall invests in Simplicity

Contributor:
Fuseworks Media
Fuseworks Media

Simplicity, New Zealand’s fastest growing KiwiSaver scheme, today announced that Sir Stephen Tindall’s K1W1 investment arm is funding its growth.

K1W1 has provided a $1.5m debt facility to allow Simplicity to repay existing debt, grow its core business and expand into other financial services.

"My values, and those of Simplicity, are closely aligned," said Sir Stephen. "We both want a better deal for New Zealanders" he said. "I’m delighted that we can help Simplicity grow, and that I can personally be involved," he said.

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

"It’s pretty simple, high margins charged by others are our opportunity," said Mr Stubbs. "And high margins are everywhere in financial services," he said.

"With the Warehouse, Stephen and his team work hard to charge people less. We’re doing that in KiwiSaver now, and could do it in other areas too."

Sir Stephen has also agreed to be the Patron of the Simplicity Charitable Trust, the ultimate owner of Simplicity.

Simplicity pays 15% of its management fees to the Simplicity Charitable Trust, which is already giving over $25,000 a month 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," he said.

Simplicity now has over 22,000 members and $750m of funds under management. It became cash-flow positive in July 2018 and is currently growing at 3x it’s original forecast.

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