Rich-listers recruit IT as next ‘soldier’
Multimillionaire property magnates the Chow brothers are looking to diversify their business empire by throwing more than $100 million into the technology sector.
Michael and John Chow want to buy, take over or create technology companies, with the intention of focusing at least 25 per cent of their growth investment in IT by 2020.
John Chow said they had invested in a tech firm in 2010, but lost millions of dollars in the process. They believe this time around, they would make better investments.
‘‘Seven years ago we invested $3 million into an offshore IT start-up business as a punt and lost the lot,’’ Chow said.
‘‘But we learned from that loss and we are smarter for it. We were actually before our time. But we know now that the time is now right to invest in smart technology in certain market areas.’’
John Chow was reluctant to give details about what type of companies they were looking to invest in.
‘‘My degree is in computer science, so that might give a hint as to what IT excites me. But I’m open to be convinced from market players where we should invest.’’
The brothers were more interested in becoming partners, rather than just providing capital, Chow said.
Inno Capital, a property finance company launched by the Chows in 2015, was an example of a business which could grow ‘‘at an even faster pace’’ with smart technology, he said.
‘‘We find the actual process of lending in New Zealand quite oldfashioned and manual. But in Europe, for example, there are some very intelligent systems to manage lending that currently are not in New Zealand.
‘‘[So] what I am saying to the IT community is, we have money to invest, so show us what you have got, but make sure it’s exciting.’’
The brothers had already had some ‘‘high-level meetings with industry leaders’’, Chow said.
Building industry systems and property maintenance systems were two other areas of interest, fuelled by the group’s ownership of Stonewood Homes and Stonewood Fire Services.
‘‘I see our various business groups as soldiers, all marching forward to collectively grow the group. If one soldier stumbles we have an army of others to pick them up,’’ Chow said.
‘‘I see a significant IT investment as another key soldier that can assist all the others to grow even faster.’’
The Chows hoped the technology investment would help them reach their aim of managing a $1 billion portfolio by 2020.
The brothers, whose assets include commercial property, hotels and strip clubs, built their $200m portfolio from the ground up, starting with the adult entertainment industry.
Property remains 90 per cent of their assets.