Billionaire Neilson sells down stake in fund manager he co-founded

Billionaires Kerr Neilson and Judith Neilson are selling about 10 per cent of the listed fund manager he co-founded 25 years ago, freeing up about $300 million for interests including arts and philanthropy and to diversify their personal investments.

The Neilsons, who divorced in 2015, will each sell 30 million shares in Platinum Asset Management at $5 a share, a 9 per cent discount to Tuesday's closing price of $5.50.

After the sale, Kerr Neilson will still have voting control over 42.97 per cent of  the company.Credit: Jessica Hromas

After the sale, Mr Neilson will retain 126,037,420 shares and Mrs Neilson, founder and patron of the popular White Rabbit Gallery in Chippendale, Sydney, will have 126,037,421 shares. Mr Neilson will  have voting control over 42.97 per cent of the company. The Neilsons have committed not to sell any more shares for 12 months.

Mr Neilson, who's been dubbed "Australia's Warren Buffett" for his investment prowess, said he would remain on the board and "participate in the daily activities of the investment team".

"The partial disposal of our interests allows us to direct some of our capital towards other pursuits,
particularly those that relate to the arts and philanthropy, as well as diversifying our personal
investments," Mr Neilson said in a statement on Tuesday night.

"The company has a remarkable pool of talent which will be thoughtfully and ardently guided to pursue the purpose of the firm of providing investors with superior returns."

Judith Neilson is selling 30 million of her shares in Platinum.Credit: Janie Barrett

The sale will be conducted as a fully underwritten offer to institutional and professional investors on March 19.

Platinum chairman Michael Cole said the partial sale would have no impact on the firm's day-to-day investment processes or operations, and he looked forward to welcoming new shareholders to the register.

"I want to again acknowledge the outstanding contribution that our co-founder Kerr Neilson has
made to the company and appreciate his continuing commitment both as an executive director and
major shareholder," Mr Cole said.

The company's value almost halved from a peak in February 2018 to the start of this year, as its investments stumbled and after Mr Nielson stepped down as the fund's CEO. However, it has steadily clawed back ground since the end of January.

Mr Neilson, who was born in South Africa and whose personal wealth was valued at $1.78 billion by the AFR Rich List 2018, built his reputation with Bankers Trust during its glory days of the 1980s.

At Bankers Trust, he famously ensured his investors were defensively positioned prior to the sharemarket crash of October 1987.

with Reuters