New Zealand Rugby will proceed with a NZ$62.5 million (R715 million) capital raise from its existing deal with US investors Silver Lake.

The capital raise will see Silver Lake’s stake in NZ Rugby’s commercial arm lift from 5.71% to 7.5%, the national body said in a statement on Friday.

In February, NZ Rugby agreed to sell an initial stake to the US fund manager for NZ$200 million (R2.3 billion) after reaching an agreement with the players’ union.

NZ Rugby said in a statement that it had considered alternative options, including institutional investors in New Zealand, but decided that 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,” NZR said.

Photo: FRANCK FIFE / AFP