Alex Waislitz on legal fights and investments: ‘Where I’ve been challenged, I will defend myself’

Alex Waislitz has drawn a line in the sand, declaring he will defend his reputation as a string of legal cases loom for the billionaire investor this year.

Billionaire investor Alex Waislitz: ‘I’ll defend my employees. I’ll defend my family, my kids, on all fronts. Forever more.’ Picture: Arsineh Houspian

Alex Waislitz has vowed to defend his reputation as a string of legal cases loom for the billionaire investor this year, led by the blockbuster court action brought against him by ex-wife Heloise Pratt.

In an interview with The Weekend Australian, Mr Waislitz said he was not concerned about losing control of his $1.3bn investment house Thorney, which is at the heart of the battle with Ms Pratt, and said he would work hard to minimise distractions for the company’s employees – which include his brother and son.

“In other personal matters, where I’ve been challenged … I will defend myself. I’ll defend my employees. I’ll defend my family, my kids, on all fronts. Forever more,” Mr Waislitz said in Melbourne’s Thorney offices.

The billionaire investor also said he would consider backing a class action against high-profile Melbourne property developer Tim Gurner over alleged defects in a $20m penthouse apartment bought by Mr Waislitz in Gurner Group’s luxury Saint Moritz Project in St Kilda.

Mr Waislitz revealed he was not on speaking terms with Mr Gurner. Instead, Mr Waislitz is now dealing with former Australia Post boss and one-time NAB executive Ahmed Fahour, who joined Gurner Group as chief executive last year.

Mr Waislitz said Thorney was closely monitoring some of its other deals, including one with US-based former tech unicorn Updater – which the billionaire accuses of withholding key information from shareholders. But it is the case involving his ex-wife that has made most of the headlines.

In documents lodged with the Supreme Court in Victoria late last year, Ms Pratt sensationally accused Mr Waislitz of engaging in criminality and acting dishonestly by paying himself and his charitable foundation $1.147m without her knowledge and ­approval.

Mr Waislitz was also accused of withholding board documents and other financial information from Ms Pratt. Mr Waislitz runs Thorney, which is jointly owned by him and Ms Pratt, and other related companies.

Mr Waislitz strongly denied all of the allegations against him, and in his defence lodged on Christmas Eve, claimed Ms Pratt’s case was “embarrassing”, inadequately particularised and liable to be struck out.

While the high-profile court case may loom as a distraction – Ms Pratt is a member of the billionaire Pratt family and sister of cardboard box manufacturing and recycling magnate Anthony Pratt – Mr Waislitz said he would concentrate on navigating Thorney through what looms as a challenging market this year.

“Thorney will continue as business as usual is what we anticipate, as we should. We’ve performed very well and given career opportunities to people, and the future is bright, I think, for my family and my kids. We’ve performed strongly over the journey (and) there’s plenty of opportunities out there,” Mr Waislitz said.

As previously revealed by The Australian’s Margin Call column, Ms Pratt and Mr Waislitz had been attempting to negotiate through solicitors over the ownership and control of Thorney Investments, which was started by Mr Waislitz in the early 1990s but also jointly owned by Ms Pratt. The pair married in 1994 and remained on financially amicable terms following their separation in 2015. Ms Pratt sought to finalise the terms of their separation over the past 24 months, but those talks have broken down over the past year.

Thorney grew out of a sum of money provided by Ms Pratt’s father, the late cardboard magnate Richard Pratt.

Mr Waislitz has maintained that the funds were repaid.

Heloise Pratt and Alex Waislitz.

In 1991, Mr Waislitz was given a $1.15m parcel of Amcor shares by his late father-in-law, which was parlayed into a $300m investment portfolio by the end of that decade and then more recently passed the $1bn mark.

Thorney is privately owned but also manages two listed investment companies, Thorney Opportunities (TOP) and Thorney Technologies (TEK). The former’s investment portfolio returned 16.33 per cent in the year to December 31, according to a recent market release. Its holdings include 20 Cashews, the private company which owns the Australian Community News regional media business, and listed stocks such as Austin Engineering and Southern Cross Electrical ­Engineering.

TEK, meanwhile, was up almost 8 per cent in the same period – slightly below its benchmark S&P Small Ordinaries Accumulation Index. Its holdings include Dubber stock and shares in emerging technology firms such as Avita Medical, Mesoblast and Credit Clear.

Mr Waislitz said Thorney would take an “activist” position against any alleged wrongdoing or lack of strategic clarity in the businesses he invests in.

Thorney is now a 22 per cent shareholder of ASX-listed software company Dubber, which made headlines after it was revealed $26m had gone missing.

It is alleged former CEO Steve McGovern and lawyer Mark Madafferi misused the money, which is still unaccounted for, and both have been ordered by the Federal Court not to leave the country amid an investigation.

Mr Waislitz has previously told The Australian Thorney is actively managing its investment in Dubber, with Jeremy Davis joining the board this year.

Alex Waislitz pictured in 2020 with his partner Rebekah Behbahani and their daughter Storm.

Despite the missing money, Mr Waislitz said he remained optimistic about the company.

“As has been extensively reported, Dubber suffered from missing funds arising from the alleged misconduct perpetrated by a former senior executive. Thorney Investments was prepared to step in when the crisis unfolded and provided an emergency loan which arguably allowed Dubber to avoid collapse,” he said.

“We fully support the Dubber board’s efforts to hold those responsible to account and we encourage the board to pursue all avenues to recover shareholders’ funds.” Mr Waislitz said Thorney was also scrutinising its investment in faltering home relocation technology firm Updater.

“We come across a lot of companies that we invest in that disappoint or that problems emerge, such as Dubber,” he said. “Information that’s not made readily available to shareholders that should be, who have a right to know as the owners of the business, such as in Updater, that has transitioned to the US.

“Our role is to defend our shareholding on behalf of ourselves and other shareholders … and challenge those companies to do the right thing, to act properly and fairly and to create value for shareholders.”

Speaking at his Thorney office in Melbourne, Mr Waislitz the company would challenge boards and executives and “if we don’t get the appropriate response on our own regard or together with other key shareholders, we will seek change so that the right outcomes … can be achieved”.

“I will continue to do that on Thorney, where we’re an activist,” he said.

“And I’ll continue to do that in my personal life, when challenged as to my reputation, as to my deeds and actions.

“Whether that’s a situation with Gurner, completing (the apartment block) Saint Moritz to the standard promised.”

Originally published as Alex Waislitz on legal fights and investments: ‘Where I’ve been challenged, I will defend myself’