VIGNETTES OF SINGLE FAMILY OFFICES (SFO) IN NEW ZEALAND
This page presents five family offices which are unique to New Zealand. The vignettes provide background on the business families including the family history, net worth and the primary activities of the established SFO. The section also presents two unique establishments, which are not specifically categorised however, as presumed by Schickinger et al., (2022) and Rivo-López et al., (2021) share the characteristics of an SFO with their aim aligning with the preservation of family wealth and family legacy.
TODD FAMILY
“There is immense complexity that comes from dealing with this quantum of individuals, and entities. There is an amusing adage relating to family offices that says: ‘if you have seen one family office, you have seen one family office’ and the implication of course is that each family office is very different and individual.” (Andrew Hull, CEO – Hubbis, 2023)
Worth: Investment – $4.3 billion (2023)
That old family is easily one of the wealthiest and most well-known families in New Zealand. The Todd corporation his sustained its presence as one of New Zealand ‘s most successful and largest companies with a history dating back to 1884. The main interests of the company include “hydrocarbon exploration and production, electricity generation, energy retailing, property development, minerals, healthcare and technology” (National Business Review, 2019). They have a reputation for looking after the employees, the wider community and the environment. In 2007 the family established a family office which has a number of family directors being a mix of family members and non-family members, and a non-family CEO who was originally appointed as a general manager of corporate services, before becoming the Todd family office CEO in 2010. Prior to the formation of the family office the family established the Todd foundation in 1972. This is the philanthropic arm of the family has a vision of “an inclusive Aotearoa New Zealand where all families, children and young people can thrive and contribute” (Todd Corporation, 2023). Hundreds of thousands of dollars each year are given away to serve this purpose. Stemming from the corporations founding document, it is clear that all shareholdings need to be held by the family bloodline which accounts for a direct lineage of over 250 descendants, to the extent this excludes spouses. The total board composition needs to include at least a quarter of family directors. The family office with its about 30 employees, provides a vehicle for the Todd family descendants who are front and centre of every decision and service provided, including managing assets well beyond the corporation (Hubbis, 2023).
“This translates into about 700 legal entities that we deal with, and you can then multiply that by two to three times in terms of the investment portfolios, cash portfolios, lending and other things that we provide for them… All of the services we provide to Todd family members are designed to reduce the complexity in their lives, to make them a little bit easier.” (Andrew Hull, CEO – Hubbis, 2023)
However the family maintains privacy about how much the family office manages of behalf of its beneficiaries (Inder, 2006).
GOUGH FAMILY
“I feel immensely proud of what we have built… Our intention is to be a leading family office with a 100-year vision; 15 years in, we are just getting started… The family office allows us to apply a values-based thread through all of our business and investment activities, with a deliberate intergenerational view” (Ben Gough – National Business Review, 2023b)
Worth: Investment – $555 million (2023)
The original golf family business was founded in 1929 by brothers Tracy and Edgar Gough with a loan to establish an electrical goods supply company. They were known for producing the first shock therapy machine in New Zealand before moving towards establishing a Caterpillar franchise. Later in 1994, the company became the Gough Group with 950 employees in over 50 locations and revenue over $500 million. Grandchildren of Tracy Gough , siblings Ben and Gina, were given ultimate control in 2017 given their over 50% holding. The Gough Group was eventually sold for $211 million in 2019. However disputes ensued with the remaining siblings which were described as a “byzantine family history… [with] many Christchurch legal practices and most of its pre-eminent silks have at one time or another being sustained by the families seemingly interminable disputes” (National Business Review, 2023b). On one side you had Ben and Gina, who had significant property interests, with Gina establishing the Fife Foundation to raise funds for charities while retaining a low profile. On the other hand, the remaining four siblings went their separate ways with their cut of the family cloth while Ben and his wife, Penny, established a family office. The purpose of the family office is to establish a long-term, values-based vision with an intergenerational view. Under the banner “Gough” there are three pillars: Investments, family office, and foundation. Their family office is based on an international model incorporating their businesses, investment, family and philanthropic interests under one brand. The couples’ Gough Investments formed a partnership called Alvarium Investments New Zealand which is “… made up of mergers and acquisitions of multiple companies that share an entrepreneurial spirit and curiosity for wealth innovation.” Alvarium is 100% New Zealand owned by New Zealand families and serves as the investment (wealth protection and creation) pillar of “Gough” (Alvarium, 2023).
“Alvarium Investments Limited is a global multi-family office, co-investment partner and merchant banking boutique providing tailored solutions for families, foundations, institutions and sovereigns, with NZ$30 billion currently under supervision. Gough Investments uses the Alvarium partnership to create opportunities and to optimise value for our projects and partners.” (Gough, 2023)
The Ben Gough Family Foundation is the third pillar purposed with “unleashing potential to create thriving communities” including leadership scholarships, experiential education, arts and culture, well-being in health, and the environment (National Business Review, 2023b).
GOODMAN FAMILY
“Purpose is everything. It provides a reason for being. If you have longevity, sustainability, and a reason for being, profit will follow.” (Greg Goodman – National Business Review, 2023a)
Worth: Property – $3.8 billion (2023)
The Goodman family grew from humble beginnings as the “Bakers of Motueka” a small town at the tip of the South Island, New Zealand. Pat and Peter Goodman’s baking business served the local community for decades before the business was transformed into trans-Tasman business. In the 1960s the Quality Bakers cooperative was expanded to merge with Fielder Gillespie Davis, Allied Mills of Australia, and later Wattie Industries. Goodman Fielder Wattie was established in 1987. Sir Pat Goodman’s son, Greg elevated business to the next level bringing property development into the portfolio (National Business Review, 2023a). Now a global business, the now named Goodman Group has property across New Zealand, Australia, Europe, North America and Asia, focusing on sustainability, health and wellbeing in the development and management of logistics and distribution centres, warehouses, business parks and data centres in major global cities. Their accumulative assets under management have reached about NZ$85 billion, with a portfolio occupancy rate of 99% and with a further NZ$15 under development (Goodman Group, 2023b).
The Goodman Family Office is managed by Gregs brothers Patrick Jr and Craig. Their investments include property and technology stocks (National Business Review, 2023a). The Goodman Foundation is the philanthropic arm which addresses disadvantage experienced by people in our global communities in three areas: Children and youth, Community and community health, and Food and product rescue and the environment (Goodman Group, 2023a).
GREEN FAMILY
“If you can’t afford to invest money, don’t borrow to do it.” (Hugh Green – National Business Review, 2023c)
Worth: Property – $780 million (2023)
Priding itself on being debt free, the Hugh Green Group (HGG) has led the way in the property and development sector since 2002. Green started out partnering with Barney McCahill who together established won a contract for the Post and Telegraph Department leading them to establish in 1953 Green & McCahill Contractors. Green & McCahill became one of the largest contractors in New Zealand employing 500 workers working on large infrastructure projects. Not satisfied with just contracting, Green and McCahill diversified into property investment, including farms around the Auckland and Waikato regions. These large farms were considerable farming operations which Hugh Green also managed as cattle trading operations in part. Given the substantial ownership of land in the outskirts of Auckland and in the Waikato, interest tuned to residential commercial development, eventually having 50 companies owned by the group (Hugh Green Group, 2023; National Business Review, 2023c). In 1968 the Hugh Green Trust was established, later becoming the philanthropic Hugh Green Foundation in 1998, giving away away about $2m each year. The family has a philanthropic philosophy of providing a “hand-up not hand-out” which goes for the treatment of family members as well (Business Hall of Fame, 2023). By way of family office the family chose to give away their wealth to charity through the Foundation which has intergenerational leadership from the Green family (Hugh Green Foundation, 2023; Phare, 2021).
WI PERE TRUST
An example of a Maori trust that is intergenerational while linked to settlement claims and perpetual succession, is the Wi Pere Trust. Governed by descendants of politician Wi Pere, the Wi Pere Trust was created as an Act of Parliament in 1899 and “beneficial interests or shares were bestowed and continue to be transferred to future generations today. The Trust is a statutory trust board in accordance with the Maori Purposes Act 1991.” This differs from traditional trusts given its link to Treaty settlements (NZ Government, 2023). Their business is spread across agribusiness, horticulture, and forestry with an equity position of NZ$165 million generating returns on behalf of over 500 beneficiaries. The Trust sits between a family business and a family business with the constitution being recently changed by an Act in Parliament to remove ministerial oversight. This provides limited liability on the trust and gives the power back to the whānau to appoint trustees (National Business Review, 2023d).
“The Wi Pere Trust is a mixture of cultures both whanau and commercial. While this makes the Trust somewhat unique, it adds to the challenges the trustees need to consider to ensure Wi Pere’s legacy is nurtured and enhanced for its future generations of beneficiaries.” (Wi Pere Trust, 2023)
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