Discovering Graeme Hart: New Zealand's Billionaire Business Mogul

Chances are, you use several of the products manufactured by New Zealand's richest person almost every day. Well technically, these products are manufactured by a private equity firm called Rank Group, which is controlled by a man named Graeme Hart. Thanks to Rank Group and its diverse set of assets, Graeme Hart is worth $8.7 billion. Over the years, Rank Group has built up a consumer product empire by acquiring food and beverage packaging companies through leverage buyouts (LBOs). The majority of Hart's wealth comes from his sole ownership in the Reynolds Group, which you probably know mainly from its products Reynolds Wrap and Hefty trash bags. It's safe to say you've interacted with one of Hart's products very recently, no matter where in the world you live. From high school dropout to billionaire business mogul, the journey of Graeme Hart is certainly fascinating!

Graeme Hart was born in Auckland, New Zealand in 1955. His father was a radiologist. Graeme dropped out of school (the very same one that Russell Crowe attended) at the age of 16 to become an auto body repairman and tow-truck driver. Who knew back then what riches awaited him in the future? In 1976, he founded Hart Printing Company, hired two employees, and was off and running. He applied and was accepted to the University of Otago's MBA program, one of only a few applicants without an undergraduate degree (or in Hart's case, a high school diploma).

Graeme's grad school thesis offered a glimpse into his future and laid out his plan for Rank Group. He wrote a treatise on finding cheap, easy-to-run, underperforming businesses that produce products people use every day. Moreover, the focus of his theses was on how to use leveraged buyouts to acquire those assets. He then went on to write about how to cut costs, consolidate operations, and then either take the company public or sell at a profit. This became the blueprint he would follow on his way to becoming a billionaire.

Table of Contents

• Biography of Graeme Hart
• Early Career and Business Ventures
• Investment Strategies and Successes
• Personal Life and Interests

Biography of Graeme Hart

Graeme Hart's life story is a testament to determination and strategic thinking. Born in Auckland, he faced challenges early on but chose to carve his own path. After dropping out of school, his entrepreneurial spirit led him to start his first company, laying the groundwork for his future successes. Hart's focus on acquiring underperforming businesses and turning them around became a defining characteristic of his career.

Early Career and Business Ventures

After completing his MBA, Graeme Hart quickly made a name for himself in the business world. He merged several party supply companies, creating a monopoly in Auckland's market. This early success set the stage for further investments and the eventual founding of Rank Group, which would become his main vehicle for future acquisitions. His business acumen allowed him to navigate through crises, such as the stock market crash of 1987, by taking Rank Group private and focusing on long-term growth.

Hart's approach to buying and merging companies was a game-changer in the industry. He sought out businesses that were undervalued, easy to manage, and had potential for improvement. This strategy not only enhanced his wealth but also solidified his reputation as a savvy investor.

Investment Strategies and Successes

Graeme Hart's investment strategies have been instrumental in his rise to billionaire status. He is known for his use of leveraged buyouts to acquire companies and streamline their operations for profitability. His significant investments in companies like Burns Philp and the government printing office of New Zealand demonstrate his calculated risk-taking approach.

From 2002 to 2012, Hart's Rank Group acquired a remarkable 12 companies, amassing a combined value of $14 billion. These acquisitions included major players in the packaging industry, further expanding his empire and ensuring a steady stream of revenue from well-known brands.

Personal Life and Interests

Beyond his professional achievements, Graeme Hart leads a life filled with personal interests and philanthropic efforts. He is known for his love of the sea and owns a luxurious yacht, the Weta, which cost $150 million. His humanitarian efforts came to light when he rescued three people and a dog from a burning boat in 2007, showcasing his bravery and commitment to helping others.

Hart's personal investments in real estate reflect his keen eye for value. His Glendowie home, purchased for $2 million, has undergone extensive renovations, now valued at $30 million. Alongside his beach house and Aspen estate, these properties speak to his success and the lifestyle it affords him.