The unprecedented wealth being generated by the stockmarket boom will probably see a record number of new names make it onto the BRW Rich List when it comes out next month.
Australia now boasts the world’s fourth biggest funds management industry after the US, Luxembourg and France. Clipping the ticket on this $1 trillion pile of cash is hugely profitable once you reach scale, as the Platinum Asset Management prospectus reveals in stunning detail.
The industry remains largely controlled by local investors, unlike the resources sector where foreigners are enjoying most of the windfall gains.
The funds management and mining industries will be the biggest source of new names as you can see from these five new names that we’ve added to the Crikey Revised Wealth (CRW) list today:
Malcolm Halstead: Finance director of Platinum Asset Management since it was launched in 1994. Will collect more than $15 million in the float and still own 24.3 million shares worth $121.5 million based on the $5 issue price.
Andrew Clifford: Platinum portfolio manager who will retain a 6.2% stake worth $174 million after the forthcoming float.
Duncan Saville: A UK-born Australian citizen who runs a funds management and corporate raiding business valued at more than $500 million from his Vaucluse mansion. Is the largest shareholder in ERG and controls HRL Morrison, the manager of infrastructure investor Infratil.
Andrew Sisson: The controlling shareholder in Balanced Equity Management invests about $12 billion on behalf of big superannuation funds, which suggests he’s worth about $300 million.
John Borshoff: The Paladin Resources CEO is one of the few uranium wannabes who actually produces yellow cake and his stake in the company is now worth $182 million after the stock more than doubled over the past year.
BRW borrowed nine of the names from the CRW list last year and we suspect they’ll easily be into doubles figures when it comes to assembling the 2007 edition.
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