Graeme Hart and his business principles
Graeme Hart was the first New Zealand citizen to amass a fortune of NZ$10 billion. As of 2024, his net worth is estimated to exceed NZ$12 billion. He achieved his status as one of the country’s richest people through private investments. His activities in this field made him an authoritative figure in New Zealand and around the world.
Born in 1955, Hart showed entrepreneurial initiative from a young age. At 15, he dropped out of school to focus on work. He got a job as a tow truck driver and became a skilled panel beater. At 18, he decided to think bigger and started his first business. He borrowed money from his father.
First steps in business
In 1987, Hart received an MBA, which, when combined with his practical experience, enabled him to pursue promising opportunities. In 1990, he purchased a printing company for less than its original cost. The following year, he bought the Whitcoulls Group, which included a chain of bookstores and a stationery and office supplies business. In just two years, Hart significantly expanded the business. Whitcoulls captured 40% of the book and stationery market in New Zealand. Hart later sold this asset at a profitable price.
The billionaire’s business model
Hart focused his attention on the private investment sector. His activities are based on the following principles:
1. The businessman buys undervalued companies or enterprises that are currently operating inefficiently.
2. Graeme prefers to use borrowed funds to conclude deals.
3. Companies with a stable cash flow become investment targets.
4. Hart transforms the acquired business to reduce costs and optimize cash flows.
5. The company restructures new businesses and integrates them into a single holding.
Graeme Hart is not directly involved in the management of the companies in his business structure. His main roles are financing and strategically recapitalizing enterprises. This enables him to generate stable, profitable assets without getting involved in day-to-day operations.
Development of Hart’s business empire
A significant milestone in the company’s development was its acquisition of Carter Holt Harvey in 2006. Since then, his efforts have focused on the paper packaging sector. All operations are carried out through the investment company Rank Group. The group owns a number of firms and shares in various businesses. The group’s structure includes:
– International Paper — a New Zealand-based beverage packaging manufacturer;
– SIG — a Swiss packaging company;
– Blue Ridge Paper Products, an American paper packaging manufacturer;
– Burns Philp and Company Limited, an Australian-New Zealand business operating in the food sector.
The Rank Group’s portfolio changes regularly through the sale or purchase of assets. This approach allows it to reduce costs in the event of a decline in the profits of the companies that make up the structure.
