Fay Richwhite was formed in 1973 by ex Securitibank employees Sir Michael Fay and
David Richwhite. Fay Richwhite rapidly grew to become one of the leading merchant banks in Australasia during the 80’s and 90’s with offices in New Zealand, Australia and London.
From their 151 Queen Street address Michael Fay and David Richwhite’s business encompassed the full range of investment banking and trading services one would expect. However it was their role in the privatisation of several of New Zealand’s State Owned Assets in the late 80’s and 90’s that Fay and Richwhite became most well known for.
Michael Fay and David Richwhite, along with their crack team of up and coming investment bankers were advising the New Zealand government on a number of asset sales and ultimately orchestrated and co-invested in consortium's to purchase some of these significant assets as summarised below:
- The Bank of New Zealand in 1989 in which Fay Richwhite purchased a 32% share through their entity, Capital Markets
- Telecom NZ in 1991 for $4.5 billion with Ameritech, Bell Atlantic and Freightways
- NZ Rail in 1993 for $410 million with Wisconsin Central and Berkshire Partners
- Fay Richwhite also invested with Wisconsin Central, Berkshire Partners and Goldman Sachs to purchase 4 of the 5 UK rail companies being privatized in 1996. Forming English, Welsh & Scottish Railway Ltd (EWS) and running 95% of British rail freight until it was sold in 2008.
Whilst Michael Fay and David Richwhite well and truly stamped their mark on the New Zealand Investment Banking sector with their involvement in these State Asset purchases, they were also heavily involved in early stage financing of many local and at the time niche but high growth sectors including the New Zealand Film Industry, Oil exploration off the Taranaki coast; Kiwi Fruit, Apricot and Deer Farming. David Richwhite also served as deputy Chairman of the New Zealand Business Roundtable from 1990 through to 1997.
Aside from their financing activities, David Richwhite and Michael Fay become yachting industry figureheads following their three attempts to secure the coveted America’s Cup trophy for New Zealand. Based from the Mercury Bay Yacht Club, the challenges of 1987, 1988 and 1991 saw them hold the Cup briefly following the 1988 “Big Boat” challenge however it was lost in the US courts soon after. Michael Fay was recognised for his considerable efforts and contribution to the sport in New Zealand by receiving a Knighthood in 1990 and it was his and David Richwhite’s efforts which formed the foundation upon which the New Zealand team successfully won the Cup in 1995.
In 1998 Fay Richwhite was sold to various partners and Michael Fay and David Richwhite, along with their families emigrated to Switzerland where they lived until 2003. Whilst still active in business, these days Michael Fay and David Richwhite channel much their energy into more lifestyle oriented pursuits. Michael Fay now lives back in New Zealand and spends much of his time managing the farming operations of his and Richwhite’s private Island off the Coromandel coast, whilst David Richwhite resides most of the year in London where he spends time in music production and artist management.
