A conversation with Michael Karabassis at Net Funds

In this conversation, Co-CEO Mark Hurley sits down with Michael Karabassis, Director of Investments at Net Funds, to explore the firm's distinctive approach to alternative asset management across New Zealand's commercial property and private market landscape. The discussion delves into Net Funds' evolution from traditional single fund investment to offering a three pillar fund in real growth opportunities with Commercial Property, Private Credit and Private Equity, their commitment to sustainable development practices, and how their evergreen fund structures are reshaping investor expectations. With the team of Net Funds previously managing over $500 million in real estate transactions and advising on $200 million in private equity funds, Net Funds represents a new generation of asset managers combining institutional discipline with entrepreneurial agility to deliver both short-term returns and long-term wealth creation.Net Funds has carved out a unique position in New Zealand's alternative asset management space, spanning commercial property, private credit and private equity opportunities. Can you share the founding vision behind Net Funds and explain how you identified the gap in the market for institutional-grade opportunities accessible to investors of all sizes?

We began, like many do, out of frustration — struggling to find an investment platform we’d trust with our own capital if we weren’t managing it ourselves. That sparked a simple but powerful idea: apply 100-year thinking to a model grounded in rigorous risk management, and deliver what investors actually want — income, capital growth, equity, and something genuinely interesting.

What started as one idea quickly evolved into three distinct offerings. Most firms focus on just one or two — we built an ecosystem designed to support investors across their full financial journey, from initial capital deployment to multi-generational wealth building. Net Funds aren't just about where your money goes today — it’s about who it empowers tomorrow.Your approach includes both evergreen funds and deal-by-deal structures, from the fully subscribed Property Plus Fund targeting 23.89% IRR to the evergreen Net Property, Net Capital & Net Equity Funds. How do you determine the optimal structure for each opportunity, and what drives your decision to offer such diverse risk-return profiles across your portfolio?At Net Funds, structure follows strategy. We don't start with a fund type — we start with the underlying opportunity. The nature of the asset, the timeframe, the liquidity profile, and the investor alignment all shape whether we structure it as an evergreen vehicle or a fixed-term, deal-by-deal investment.

Our evergreen funds — like Net Property, Net Capital, and Net Equity — are designed for long-term capital compounding. They allow investors to build consistent exposure, reinvest returns, and stay aligned with macro trends like intergenerational wealth, infrastructure development, and private market growth. These funds work best where deal flow is consistent, the assets are income-producing or re-investable, and where alignment with wholesale and AIP investors is critical.

On the other hand, deal-by-deal structures allow us to move quickly on high-conviction, higher-return projects — like our fully subscribed Property Plus Fund, which targets a 23.89% IRR. These opportunities often require a specific risk appetite, tighter timelines, and more direct investor engagement. For many sophisticated investors and family offices, that level of focus and control is exactly what they’re looking for.

Offering both allows us to match the right capital to the right opportunity, while giving investors flexibility across the risk-return spectrum. It also means we can build deeper relationships with our investors — supporting them not just with products, but with a platform that grows alongside them.

Net Funds prioritises environmental efficiency and aims to meet NABERSNZ and Green Star standards across your property investments. How do you balance sustainability commitments with investor return expectations, and what role do you see ESG factors playing in New Zealand's commercial property market evolution?

Sustainability and returns are not at odds — they’re increasingly interdependent. At Net Funds, we view environmental performance not as a cost centre, but as a value driver. Meeting NABERSNZ and Green Star standards improves building efficiency, attracts higher-quality tenants, reduces long-term operating costs, and ultimately enhances asset value.

We incorporate environmental criteria into our acquisition and development processes early, not retroactively. This ensures capital is deployed into assets that are both future-proofed and financially viable. Investors are increasingly aware that buildings with poor environmental ratings risk becoming obsolete or discounted in future — and we’re proactively protecting against that downside.

ESG isn’t just a reporting obligation; it’s becoming a market expectation — especially from institutional and international investors. In New Zealand, we believe ESG-aligned properties will command a premium, as regulation, tenant demand, and capital flow converge around sustainability.

Our role is to deliver attractive, risk-adjusted returns today while building assets that remain desirable and resilient tomorrow. Done right, sustainability enhances both.

Your partnership providing New Zealand investors access to pre-IPO opportunities like SpaceX, xAI, and Epic Games is unique in the market. Can you discuss how you've built these international relationships and what due diligence processes you employ to evaluate such high-profile, pre-public investments?

Access to world-class pre-IPO companies like SpaceX, xAI, and Epic Games doesn’t happen by chance — it’s the result of long-term relationship building with global private equity networks, secondary market brokers, and family office syndicates who specialise in hard-to-access deals. We’ve intentionally cultivated these partnerships to open the door for New Zealand investors who traditionally wouldn’t have access to this tier of opportunity.

But access is only the first step — we’re equally focused on rigorous due diligence. Before any pre-IPO opportunity reaches our investors, we assess the cap table, entry pricing relative to last round and internal valuations, lock-up periods, liquidity timelines, governance rights, and broader market comparables. We also vet the underlying distribution channel to ensure we’re not exposing investors to counterparty or structural risk.

These are often illiquid, asymmetric opportunities — but when approached carefully, they offer the chance to participate in generational growth stories. Our goal is to provide access, but also to protect — and that’s why our vetting process is designed to match the calibre of the companies we bring to the table.

With your track record spanning both bull and bear market cycles, what trends do you see shaping New Zealand's alternative investment landscape over the next 3-5 years? How is Net Funds positioning itself to capitalise on emerging opportunities while maintaining your commitment to capital preservation and transparent investor relations?

We’ve seen enough cycles to know that markets change — but the fundamentals of good investing don’t. Over the next 3–5 years, we see three powerful trends shaping New Zealand’s alternative investment landscape:

1. Institutional capital looking for yield with control — As global uncertainty persists, more investors will turn to private credit and real assets for reliable, non-correlated returns. We’re already seeing growing interest in senior debt, value-add commercial property, and co-investment opportunities with shorter durations and clearer exit horizons.
2. AIP and offshore investor inflows — New Zealand remains a trusted jurisdiction, and the Active Investor Plus visa programme has added further momentum. Investors aren’t just looking for compliance — they want meaningful, aligned opportunities that connect them to New Zealand’s growth. Net Funds is positioned as a natural home for that capital.
3. Demand for transparency and ecosystem value — Investors want more than a product — they want access, insights, and long-term relationships. We’re building an ecosystem where investors benefit not just from performance, but from being part of a strategic network that opens doors beyond the investment.

Net Funds is positioning itself at the intersection of credibility, innovation, and alignment. Our capital preservation ethos remains central — but we combine that with the agility to respond to emerging opportunities in a smart, risk-aware way. Whether it’s through evergreen funds, deal-by-deal access, or curated co-investments, our commitment is simple: grow capital wisely, communicate openly, and build for the long term.