In March 2025, a Purpose Capital led syndicate increased its total investment in Lodestone Energy to $21 milion.
The Purpose Capital impact syndicate consists of Purpose Capital Impact Fund, Tauhara North No2 Trust, Trust Horizon, individuals and family trusts, as well as investors from the Purpose Capital Impact Fund.
This investment marks the completion of a successful internal equity raise of $50 million for Lodestone Energy.
Major investors in this round include Sam Morgan, Fisher Funds, Jarden Principal Investments, Purpose Capital Impact Syndicate and K1W1.
“With daily news about rises in electricity prices, low hydroelectricity lake levels, decreasing supplies of natural gas and increasing coal being burned, developing renewable electricity generation in NZ has never been more important.”
– Bill Murphy, Executive Director, Purpose Capital.
Lodestone’s Rangitaiki solar farm in Edgecumbe, Bay of Plenty.
Nick Pacey, Purpose Capital’s Investment Manager, noted: “Lodestone has a strong experienced senior management team, and the business continues to build momentum, with 3 farms operational, 1 under construction, and a best-in-class development pipeline which the latest equity raise will advance.”
Key factors in Purpose Capital’s follow-on investment decision were the clear recognition of Lodestone as the market leader with a credible pipeline and best-in-class team, alongside Lodestone’s unique and novel contract structure – a key source of value that continues to be proven in the marketplace. Being the first mover with scale makes Lodestone a desirable and credible platform proposition.
Lodestone Energy’s vision for solar in New Zealand communities Source: Lodestone Energy
Matt Currie, Purpose Capital’s Investment Director, noted “We are at a point where Lodestone’s price of electricity from a solar farm virtual contract is lower than the grid alternative, making for a highly attractive commercial proposition for large electricity users.“
This has led Lodestone to announce a 20-year partnership with wholesale chicken supplier, Inghams New Zealand. Ed Alexander, Inghams’ Chief Executive, shared: “Lodestone’s 100% renewable energy proposition is innovative, saves us money and enables Ingham’s to meet its decarbonisation goals long into the future. We are obtaining the same outcome as if we built our own rooftop solar infrastructure, but without the upfront capital cost and ongoing maintenance requirements.”
James Kilty, Powerco ex-Chief Executive, Joe Davis, Ngāti Hei ki Wharekaho kaumātua, Gary Holden, Lodestone Managing Director, and Hon Scott Simpson, Minister of Commerce and Consumer Affairs, MP for Coromandel, at Lodestone’s Whitianga Solar Farm site blessing.
In August, Lodestone acquired two sites in the Manawatū region from Kiwi Solar. These two sites are each expected to generate approximately 27MW when at peak capacity (MWp), producing an additional 84GWh of renewable electricity each year, capable of powering up to 11,700 homes. Both sites have land options signed and are well-progressed in the connection process with Powerco.
In September, Lodestone broke ground in the Coromandel – their fourth North Island solar farm. Iwi, local dignitaries and community members participated in a ceremony to commemorate the start of the project and marked the occasion by planting native trees on the site.
Gary Holden, Managing Director of Lodestone Energy talks to the Electricity Authority about Lodestone’s work accelerating the supply of solar across the country.
Source: Electricity Authority Te Mana Hiko
With this investment, Purpose Capital is targeting an increase in the percentage of renewable energy generation in New Zealand, as part of a broader focus on mitigating climate change.
Purpose Capital was delighted to see Lodestone Energy take home the Sustainable Business Network (SBN) “Disruptive Innovation Award” late last year, one of only two SBN awards presented.
The judges noted “The scope of Lodestone’s impact is impressive. With the capacity to power 50,000 homes, its first five solar farms demonstrate that solar power generation is a low cost and viable source of power to help meet the demand of our electrifying economy.”
Lodestone was also the 2024 Winner of the Building Nations Impact Award ‘Infrastructure Decarbonisation’ and has planted 41,500 Native plants at its sites.
The 32 MWp Edgecumbe farm will generate enough electricity to power approximately 7,500 Kiwi homes each year.
One of Purpose Capital’s goals is to be a catalyst in the reallocation of capital from traditional investments to impact investments.
To date, Purpose Capital has attracted over $23M of co-investment into impact investments in New Zealand taking Purpose Capital’s total assets under management to $45M.
Purpose Capital continues to seek quality impact investment opportunities and co-investment partners wanting to invest for financial return and impact.
Purpose Capital are Impact Investors who drive positive environmental and social change in the Waikato, Bay of Plenty and greater New Zealand. New Zealand’s largest private impact investment fund, Purpose Capital is founded on the principle that we can effect change through well-run commercial investments that deliver impact as well as financial return.
Through demonstrating the effectiveness of our approach, Purpose Capital aims to increase impact investments from asset and fund managers as well as private and philanthropic wealth. By leading investment opportunities, we provide confidence to other investors to invest alongside us in impactful companies and projects.