Board of Crown-backed venture capital fund says complaint 'not upheld'

A probe into complaints against a staff member at a Crown-backed money manager has not been upheld, with the fund revealing no details of the claims.

While the chairman of the fund says he believes the matter is closed, the Super Fund, which was told to hire the fund by the Government, says it will now review whether it still has conviction in the management.

Following a complaint against a staff member, the board of New Zealand Growth Capital Partners, previously known as the Venture Investment Fund, launched an independent investigation conducted by employment lawyer Rob Towner.

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The probe was ordered on March 11, around a week after NZGCP launched a new $300 million fund, using funds which the Government directed the NZ Super Fund to provide.

On Wednesday NZGCP chairman Murray Gribben said the investigation was completed and he believed that was the end of the matter. He would not discuss the nature of the allegations, the complainant or the staff member involved.

"I'm not going to comment on anything to do with the allegations because I don't believe it's fair on the individual or individuals that are involved in this that anything is said about this, because it's just not appropriate."

He would not discuss what threshold Tanner had used to decide the complaints were not upheld.

"The investigation was asked to investigate into two serious allegations," Gribben said.

"The allegations were not upheld. You can infer from that what you wish to, but that's the result of the investigation."

Gribben said he first learned of the allegations which gave rise to the investigation on March 11 and had no knowledge of them beforehand.

In a statement, the Super Fund said it was unlikely to see a copy of Towner's report as it was an "internal matter" for NZGCP.

"As is our normal oversight process, we will discuss the matter with the board of NZGCP in order to be comfortable that a proper process has been followed and that the outcome does not impair our conviction in NZGCP to continue to manage the Elevate Fund."

NZVIF was established in 2002 in a bid to boost investment in early stage companies and help foster a stronger venture capital market in New Zealand. Over the next 16 years it invested $173m in 239 New Zealand companies.