Malcolm Turnbull’s decision to quit politics after the next federal election and return to the business world should be music to the ears of Australia’s small and medium tech companies – one of the countries more prominent angel investors is back in town.
While Turnbull is expected to be approached about his remaining involvement in politics at some level (including at a state level) he flagged yesterday that he is keen to get back into early-stage investing with his wife Lucy Turnbull.
“Lucy and I are looking forward to pursuing new opportunities in the business world,” he told Sky News shortly after announcing his decision to quit.
“In the past we’ve had enormous fun and satisfaction by investing in and supporting and promoting new businesses and new technologies.”
“I am passionate about Australian technology in particular so I am looking forward to getting back to the business of creating jobs and creating businesses.”
“That is a very important role in any view.”
A spokesperson for Turnbull declined to comment further this morning, but said early-stage investing has always been one of Turnbull’s passions.
Turnbull will certainly have some cash to splash around. Last year’s BRW Rich 200 put his wealth at $178 million and while Turnbull described the figure as being “plucked out of the air” there is a consensus that he is worth somewhere between $150 million and $200 million.
The bulk of his fortune is held in managed funds, a prime property portfolio and personal assets.
Turnbull also has a good track record as an investor in early stage companies.
In 1999 he made just under $60 million from the sale of pioneering internet service provider OzEmail, two years after selling his boutique investment bank Turnbull and Partners to Goldman Sachs.
He also did well out of the sale of investments in hosting company WebCentral (which was purchased by Melbourne IT in 2006) and fund manager Pengana Holdings (which was sold to National Australian Bank in 2008).
Exactly where Turnbull intends to direct his cash isn’t clear, but he should find plenty of opportunities. Many small and medium tech companies are hunting for cash to fund expansion and with the banks still hesitant to lend, Turnbull should get good value for any investment he makes.
With the election slated for later this year, tech companies have a few months to dust off their investor presentations, get their pitches ready and prepare to welcome the former Opposition leader back to the world of small business.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
Comments