Monday Message 3rd May 2021

The proposed NZD388M investment by US private equity firm Silverlake to buy 12.5% of the commercial rights in NZ Rugby carries significant national interest. It’s our silver fern, our grassroots, after all. However the associated debate is displaying a naïve understanding of how private equity works: to buy, add value/improve, sell.

Therefore the capital realised on sale (plus profit or minus loss for risk
taken) will be recycled into some other investment with better value creation prospects.

The question to be considered, is this: “when will 12.5% of NZ Rugby revenue stream move from being a ‘current’ Silverlake investment to join the long list of ‘prior’ investments on their website? ”

It is all very nice to get the cash into the national game, but is it worth the risk of being in bed with an unknown 12.5% shareholder in future? From an unknown country (which could even be arch rivals Australia or France?
How will the NZ Overseas Investment Office view any sale?

When all is said and done, this deal reflects a failure of NZ capital markets to deliver an innovative and inspiring solution. The same capital markets that will be a likely keen buyer from Silverlake in future, of a better packaged, better governed, better led NZ rugby business.

Monday Message 26th April 2021

Today for some is a work day; for others an ANZAC day of remembrance.

“Heroes who shed their blood and lost their lives! You are now lying in the soil of a friendly country. Therefore rest in peace.”
– The greatest general of the Ottoman Empire, Mustafa Kemal Atatürk (1881-1938)..and founding visionary of the modern Turkish state which included providing equal rights for women, in 1934

Monday Message 19th April 2021

Shipping companies ordered a record number of container ships in March 2021 from shipbuilders, an indication of high expectations that global trade will continue to surge. They are signing deals on the back of record earnings from the supply of freight to commerce. The companies ordered 72 large vessels, with a combined capacity of 866,000 20-foot containers
(=12,000 TEU average size), significantly exceeding the previous record of
50 vessels with a combined capacity of 570,000 containers (11,400 average TEU), set almost 10 years ago, in June 2011.

By way of comparison the Suez blocking Ever Given ship is 20,124 TEU and the largest ship to visit NZ was the 11,294 TEU Maersk Antares in 2017.

(From Global Economic newsletter)

Monday Message 18th January 2021

Happy New Year!
Great to be back into it.
“We should not look back unless it is to derive useful lessons from the past errors, and for the purpose of profiting by dearly bought experience”
– George Washington (1732-1799) American Founding Father and first president, for 10 years from 1789. Son of land developers, he was a surveyor by trade, before starting a military career with the Virginia Regiment.