Time to step back from raising the ‘teenagers’
RETIRING Rangatira chief executive Ian Frame has been raising ‘‘children’’ through their teenage years as businesses for the past 11 years.
But having picked up his Gold Card last year he has decided to step away from 45 years in the workforce, though he has not ruled out investing in a business of his own.
Wellington investment company Rangatira, now into its 77th year, has been investing heavily over the past two years, including the purchase of Auckland’s Rainbow’s End and a stake in craft brewery Tuatara.
The company reported a $30.8 million profit after tax for the six months ended September, 2013, up from $3m at the same time last year.
Over Frame’s tenure the company’s assessed asset backing has grown from $102m to $187m.
Frame said he was retiring to have a bit of time for himself, but had enjoyed his time in ‘‘one of the great jobs’’.
Rangatira tended to buy into smaller, owner-operated companies which are then transitioned into larger, professionally managed companies.
He said this meant he could be involved with the more interesting aspects of a business, such as planning and direction, rather than having to worry about the daily hassle of management.
‘‘I liken it to sort of if you’re bringing up kids, taking them through the teenage years.
‘‘So that’s really interesting, it’s fascinating doing that, and really satisfying when you achieve it.’’
Frame believed buying half of smallgoods producer Hellers, and half of oil and gas services company Contract Resources, had been Rangatira’s best two investments in the past decade.
Each company had quadrupled in size since Rangatira’s investment, he said, with Frame now referring to prospective investments as finding the next ‘‘Junior Hellers’’.
He has even tried his own hand at making sausages.
But selling out of Contract Resources in late 2012 was now Frame’s biggest regret.
The oil and gas services firm was valued at $116m after an 85 per cent acquisition by Auckland-based investment firm Hellaby Holdings.
‘‘The oil and gas sector is very strong, it survived the Global Financial Crisis very well, and if you’re asking have I got any regrets, yes, I would like to have stayed invested in Contract Resources. Even if we’d sold down some of it to reduce our exposure, it would have been nice to stay in there.’’