It’s been another big year for Sir Stephen Tindall, even though he is trying to gradually reduce his business commitments to spend more time with his grandchildren.
At 68, he is no longer directly involved in The Warehouse retail group he founded in 1982, and his son Robbie now represents the family on its board. However, he is still extremely busy chairing New Zealand’s team for the 2021 America’s Cup, and overseeing both the Tindall Foundation and his family’s investment fund, K1W1.
A swimmer rather than a sailor, Tindall originally got involved in the America’s Cup because he could see its potential to transform Auckland’s infrastructure. Likewise, his philanthropic work aims to transform lives, while K1W1 is his attempt to help transform New Zealand’s economy.
He got his start in retail at Auckland department store George Courts, founded by his great-grandfather. And he once revealed that he founded The Warehouse after being turned down for the top job at the Levene home decorating chain. Psychometric testing had apparently shown a stronger devotion to his family, rather than work.
“I cried when I got off the phone that day,” he told author Ian Hunter nearly 20 years ago. “I was absolutely shattered. It was probably the worst feeling I have experienced in my adult life. In the end I picked myself up and thought: ‘Blow them, I’ll go and start my own business’.”
He now says his main motivation was a desire for independence. “The freedom of running your own business means you can do what you want to do. So, while it was quite a big risk for me, it was a great driver. Running your own business is a great thing to do.”
The Warehouse Group’s share price has sunk in recent years as the local market has matured but it is battling on. Its most recent initiative is TheMarket, an online retail platform specialising in overseas brands. Asked by NBR whether he expects the group will always remain in New Zealand hands, Tindall shrugs, and notes it hasn’t had any takeover offers lately at a price it couldn’t refuse.
He still has a 27% stake in the group, while the foundation holds 21%. In any case, it has already paid handsome dividends in all sorts of ways. Among other things, it has allowed him and his wife, Margaret, to donate more than $145 million toward various strategies to improve communities and the environment.
One of the trickiest issues the foundation is trying to solve is affordable housing. Through the NZ Housing Foundation, which he describes as a “wonderful model,” more than 1000 affordable homes have been built so far.
He continues to believe the government’s KiwiBuild programme could drive down house prices by 50%, if it were prepared to offer a contract large enough to encourage more competition among developers. “There’s definitely been a process going on, so I wouldn’t say we’re disappointed yet,” he says.
Meanwhile, his $250 million seed and venture capital fund, K1W1, continues to have about 130 investments on its books. Some have taken well over a decade to come to fruition but the fund is finally starting to see some spectacular results from companies such as Rocket Lab and LanzaTech, which are now collectively valued at several billion dollars.
He hints that K1W1 has another investment in the wings that he hopes will outdo both of those success stories – but is saying no more for now.
Throughout his career, Tindall has received so many accolades he admits he has lost count. But this year he got an upgrade to the knighthood he received in 2007, becoming a Knight Grand Companion of the New Zealand Order of Merit for services to business, the community and the environment. It is New Zealand’s highest honour.
Nevertheless, as an early champion of sustainability, he says his proudest moment this year was to learn that The Warehouse had become carbon neutral. It claims to be one of only three retailers in the world to achieve that goal.
He still believes climate change is the biggest issue facing the planet, and describes the future as “scary.” “I do have some major fears for my grandkids,” he says.
How to sum up the man? He drives an electric VW Golf.
2018: $225 million
Sir Stephen Tindall was talking to Rawdon Christie in June 2019.