Kerr Neilson: This opportunity will drive the next decade of growth

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Feb 13, 2024

Kerr Neilson, a significant figure in the Australian equity market, discusses his career trajectory, founding Platinum Asset Management, and eventually leaving the company. They also delve into their journey from South Africa to Australia, the importance of understanding key factors driving a business, running money for Soros, the potential of the Indian economy, and concerns over valuations and inducements in certain industries.

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ANECDOTE

Moving to Australia

Kerr Neilson moved to Australia from South Africa in 1983, taking a significant pay cut.
He was surprised by the high cost of housing and slower pace of life.

ANECDOTE

Family Influence

Neilson's ancestors, Scottish industrialists, invented a crucial steel production improvement.
This instilled in him the "importance of being in the game", driving his interest in AI.

ANECDOTE

Early Investing

Neilson's interest in stocks began in his teens, influenced by his mother's portfolio management, despite her perceived lack of skill.
He honed his investment narrative skills by reading stock stories in The Financial Mail.

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Over the last four years, Success and More Interesting Stuff has been privileged to host some of the legends of the Australian equity market. Arguably though no one has had more of an impact on the industry than Kerr Neilson. Originally from South Africa, Neilson landed on Australian shores in 1983 where he joined the ranks of Bankers Trust. BT was on the rise and Neilson stood out among the pack. After just two years, he was placed in charge of the retail business. Under his leadership, it became the growth engine of the firm managing money around the globe. BT’s mercurial handling of the 1987 crash saw Neilson’s retail arm of the company hit its stride, garnering billions of dollars to manage. Stellar performance and a growing reputation as a canny operator saw Neilson build a name for himself. In 1993, Neilson decided to go it alone forming Platinum Asset Management. As one BT operative described on the day of his departure, “the trading room floor at BT felt like it was hosting a funeral.” Counting George Soros’ Quantum Fund among its original investors, Platinum got off to a flying start. Pitching itself as a global investor, the company powered through the next decade reaching $26 billion of funds under management. In 2007, Neilson and his team decided to float Platinum. It was good timing, with the market nearing a peak before the Global Financial Crisis. Neilson ran Platinum for another decade before handing the reins to Andrew Clifford. In 2022, he decided to depart the Platinum board, ready for the next part of his journey. In this episode of Success and More Interesting Stuff, Neilson shares some of the major moments that shaped his career trajectory, some of his biggest wins during this time, as well as why his inventive ancestors taught him the "importance of being in the game - whatever the new game is" - and right now, he believes that is AI. He also addresses some of the major changes that he hopes are on the horizon for Platinum investors - and shares why he still believes he has a responsibility to shareholders even after all this time. Note: This interview was recorded on Thursday 8 February 2024.