BRW Young Rich 2013: Young Rich boost fortunes as they move towards maturity

The Young Rich have grown up. Listed companies, foreign locales and big brands have their biggest representation yet on the latest BRW Young Rich list of the 100 self-made people aged 40 or under.

Collectively, they are worth $5.13 billion, just $30,000 less than last year when former billionaire Nathan Tinkler was still on the list.

Debt woes led to his exit from this year’s Young Rich. No one has ever affected the list like Nathan Tinkler. He was valued at $1.13 billion in the 2011 edition of Young Rich, the biggest valuation in its 11-year history.

Read more

• The full list: BRW Young Rich 2013
• Hall of fame - the eight names that have made every list
• Nathan Tinkler fails to make the cut for Young Rich list as debts take toll
• Split from James Packer gives Erica Baxter Young Rich debut

Tinkler was knocked-off top spot last year by software entrepreneurs Mike Cannon-Brookes and Scott Farquhar . BRW has lifted their valuation by 15 per cent this year to $550 million.

Cannon-Brookes and Farquhar are the unofficial godfathers of the technology sector. Their success acts as inspiration to many and both are active supporters of the local start-up scene.

Their next move may be an IPO. The prospect of listing Atlassian on Nasdaq has long been mooted but some recent board appointments suggest it could occur sooner rather than later.

Any listing of the business is likely to be at a higher valuation than BRW’s conservative estimate and will help the long-time friends cash in on their extreme “paper” wealth.

Just behind Cannon-Brookes and Farqhaur is the low profile but ultra-successful technology investor Simon Clausen . He made his first fortune in 2008 when he sold his software company PC Tools for $300 million.

Since then, Clausen has invested in several start-up companies including Freelancer, which was recently the subject of a $430 million takeover offer.

Moving on up

Forty-year-old Matt Barrie , also moves into the top 10 this year, courtesy of Freelancer’s rapid growth.

Another big mover is Ruslan Kogan . He has lifted his ranking from eight to three and his wealth has grown to an impressive $315 million. Kogan has a stable of companies, but it is his self-named online retail business that gives him such a big valuation.

His friend and co-owner of Kogan, David Shafer, is the highest debutant on this year’s list with $75 million.

Rich 200 member and mining services boss Mark Ackroyd falls by $10 million to $280 million. He is the only member of the top 10 to go backwards this year.

The provision of equipment, labour and other services to mining companies has become a key way for young people to tap into the mining boom.

Since the market cooled, many of these smaller businesses have struggled with cash flow, which has benefited established companies, like Ackroyd’s National Plant & Equipment.

Online retailer Hezi Leibovich , from Catch Group, has the fifth-biggest fortune – $190 million.

He runs Catch of the Day and a series of other successful websites with his brother Gabby, who is too old for this list.

Technology remains fertile ground

The technology sector (including online retailers) accounts for 32 per cent of the list and while big new investments are slowing, it remains fertile ground for ambitious young entrepreneurs.

The next best-represented sector is sport. For the very young (those under 30) professional sport is the best way for a suitably talented person to become rich quickly.

While MotoGP rider Casey Stoner, 27, has already retired from the sport at which he excelled, he is still the youngest person on the Young Rich.

Other sports stars include Stoner’s fellow debutant and former Australian cricket captain Ricky Ponting.

Sports stars dominate the Young Rich Hall of Fame, a list of people to have appeared on all 11 editions. Just seven are left. They include tennis players Lleyton Hewitt and Pat Rafter and golfer Karrie Webb.

Webb is one of just seven women on the Young Rich, five of whom debut this year. They include Karen Cariss and former Victoria’s Secret model Miranda Kerr.

The recently separated wife of billionaire James Packer, Erica Baxter, joins the list and may rise next year when more details about her divorce emerge.

The other new women are Lilly Haikin (Max Brenner) and Tammy May (MyBudget), both of whom are responsible for well-known brands.

Carolyn Creswell, whose well-established muesli company Carman’s continue to grow, is the richest woman with $55 million. She ranks 34th overall.

Top five industries

The top five industries are technology (34 people), sport (14), retail (eight), financial services (seven) and property (seven).

Strong growth in the telecommunications sector has boosted the wealth of that sector’s two representatives, Vaughan Bowen and James Spenceley. Both have stakes in ASX-listed companies.

For the first time, there are more Young Rich members living overseas than in any Australian state. Thirty of them have moved offshore in order to grow their fortunes.

The most popular foreign residence is San Francisco, home to technology hotbed Silicon Valley and the National Basketball Association team Golden State Warriors, where the list’s tallest member, Andrew Bogut, is based.

The states with most Rich List residents are Victoria (27), New South Wales, (24), Queensland (12) and Western Australia (seven).

Smaller states are also represented. Tammy May lives in Adelaide and financier Greg Woolley calls Tasmania home.

Young Rich 2013: Top 10

1 & 2: Mike Cannon-Brookes and Scott Farquhar $550m

Mike Cannon-Brookes and Scott Farquhar are edging closer to the deal that could deliver them a combined fortune of up to $1 billion.

3: Simon Clausen $350m

Swiss-based technology entrepreneur Simon Clausen got a big boost on September 10 when it was revealed that Recruit Co. from Japan had made a $US400 million offer to buy freelancer.com.

4: Ruslan Kogan $315m

There are no quiet years for Ruslan Kogan. Since he burst onto the Young Rich list in 2009 with a $15 million fortune, Kogan’s wealth has approximately doubled every 12 months.

5: Mark Ackroyd $280M

Mark Ackroydsold half of his Queensland-based machine hire company, National Plant & Equipment, to Japanese conglomerate Mitsui for about $150 million last year.

6: Hezi Leibovich $190m

Hezi Leibovich’s The Catch Groupcontinues to grow at an enviable rate. Revenue rose 30 per cent in the year to June 30, 2013, to $300 million.

7: Matt Barrie $185m

Matt Barrie has struck gold with the fast-growing technology freelance jobs website Freelancer.com.

8 & 9: Mitchell Harper and Eddie Machaalani $135m

After three rounds of fund-raising, Mitchell Harper and Eddie Machaalani reckon they’ve raised enough money to take their e-commerce software platform, Bigcommerce, to the next level.

10: Matthew Tripp $115m

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