A group of South Island businessmen have been given the licence to run the Highlanders.

New Zealand Rugby had been in lengthy discussions with a Singaporean based consortium, but a combined group of investors and local provincial unions will take control.

Otago, Southland and North Otago Provincial Unions will have a 13 percent stake in the new operation.

The Invercargill City Council is acting as a guarantor to the new licence holders of the Highlanders, in exchange for guaranteed games in the city.

CEO Roger Clark said after running off the smell of an oily rag for five years, this investment will add resources to the back office.

"In the last five years we've put all our investment into the team and their on-field performance, because that's what we needed to improve."

"Now we've got to invest some money in other areas of the business."

The group is headed by Dunedin businessman Matthew Davey, who said they want to translate the business side to mirror the recent on-field success.

"To bring more innovation to the organisation in new ways, that will be the deployed across the functional areas of the business, with the operational teams, the admin teams, the marketing, all the way through to season memberships."

The Highlanders are the last of the New Zealand franchises to secure private investment, introduced three years ago by NZR.