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New Zealand Rugby, members agree to US$39 million Silver Lake capital raise

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New Zealand Rugby (NZR) will proceed with a NZ$62.5 million (US$39.24 million) capital raise under its existing Silver Lake underwrite after sealing agreement with its voting members and 26 provincial unions.The capital raise will lift Silver Lake's stake in NZR's commercial arm, known as 'NZR Commercial', to 7.5 per cent from 5.71 per cent, NZR said in a statement on Friday (Dec 22).NZR agreed to sell the initial stake to Silver Lake for NZ$200 million in February after securing agreement from the players' union.The governing body said on Friday it had considered institutional investors for the capital raise but decided the Silver Lake underwrite "provided certainty"."NZR will now conclude the capital raise process which has already seen investment provided to NZR Commercial and stakeholders, including over 450 community rugby clubs, as well as the rebuilding of NZR reserves post COVID-19," NZR said.The announcement comes after reports the New Zealand Rugby Players Association (NZRPA) was seeking to block the raise.The players' union was not able to provide immediate comment.NZR said in its statement it had consulted with the NZRPA over the capital raise but did not mention whether the union had endorsed it.An NZR spokesperson said the governing body did not need the union's endorsement for it to go ahead.NZR said the capital raise and the establishment of a 'Legacy Fund' with committed capital of NZ$60 million had been the final two outstanding elements of the initial Silver Lake deal.NZR said the fund would be set up as an endowment to further grow the game from the "grassroots up" and support annual grants for community rugby initiatives.

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