David Richwhite

David Richwhite
Born	1948 New Zealand
Occupation	Investment banker
Known for	Partner at Fay Richwhite & Company, involvement in New Zealand economic reforms and Winebox Inquiry

David MacKellar Richwhite (born 1948) is a prominent New Zealand investment banker and former partner at Fay Richwhite & Company, where he worked alongside Sir Michael Fay.

Richwhite completed his education at King's College, Auckland and earned a Bachelor of Commerce degree from the University of Otago in 1974. He accumulated substantial wealth during the late 1980s and early 1990s and was instrumental in the economic reforms implemented by the Fourth Labour Government.

The firm Fay Richwhite was notably involved in the "Winebox Inquiry", a public investigation concerning tax avoidance arrangements linked to the Cook Islands, which sparked widespread debate.

After residing in Geneva between 1998 and 2003, Richwhite currently lives in London with his family.

Fay Richwhite

Established in 1973 by David Richwhite and Sir Michael Fay, Fay Richwhite evolved into a leading merchant bank across Australasia throughout the 1980s and 1990s, maintaining offices in New Zealand, Australia, and London.

While providing a broad range of investment banking services, the firm became especially recognized for its advisory role and participation in the privatisation of New Zealand's State Owned Enterprises (SOEs). Key transactions included:

• Securing a 32% shareholding in the Bank of New Zealand (1989) through Capital Markets
• Joint acquisition of Telecom New Zealand in 1991 for NZD$4.5 billion alongside Ameritech
• Investments involving entities such as Verizon Communications and Freightways
• Purchasing Tranz Rail in 1993 for NZD$410 million with partners Wisconsin Central and Berkshire Partners

In collaboration with Wisconsin Central, Berkshire Partners, and Goldman Sachs, Fay Richwhite participated in acquiring four British national rail companies during their 1996 privatisation. This venture led to the creation of English, Welsh & Scottish Railway, which dominated approximately 95% of UK rail freight until its sale to Deutsche Bahn in 2007.

Additional business engagements during the 1980s and 1990s encompassed:

• Early-stage funding for New Zealand’s film industry
• Oil exploration projects near Taranaki through Cultus Petroleum
• Backing agricultural startups including kiwifruit, apricot, and deer farming operations
• Establishment of the Eurokiwi bond market
• Advising on government divestments across forestry, hospitality, printing, and housing sectors

David Richwhite also chaired a governmental steering committee overseeing the Post Bank sale and held the position of Deputy Chairman at the New Zealand Business Round Table from 1990 to 1997.

Ownership of Fay Richwhite transitioned to various partners during the late 1990s.

During that period, Richwhite was consistently ranked among New Zealand’s wealthiest individuals with an estimated net worth of NZD$660 million. He is currently a co-owner of Great Mercury Island alongside Sir Michael Fay.

The Winebox Inquiry: Commission of Inquiry into Certain Matters relating to Taxation

In 1994, New Zealand initiated a Commission of Inquiry addressing allegations of misconduct and inefficiency within the Serious Fraud Office (SFO) and Inland Revenue Department (IRD). The probe centered on a transaction involving a subsidiary of European Pacific Investments (EPI), directed by Richwhite and associates, in conjunction with the Cook Islands Government.

Founded in September 1986, EPI’s director David Lloyd convinced the Cook Islands Government to establish a tax haven arrangement. EPI’s subsidiary Magnum purchased a tax certificate for NZD$2 million which was subsequently utilized to claim an equivalent NZD$2 million tax rebate from New Zealand authorities. As a result, the EPI group effectively paid only NZD$50,000 to the Cook Islands while obtaining a NZD$2 million credit from New Zealand tax officials.

This "Magnum" deal became central to an inquiry led by politician Winston Peters, who famously presented critical documents to Parliament stored inside a winebox—giving rise to the inquiry’s popular name.

Although no fraud or incompetence was officially found by the Commission, the controversy led to reforms in New Zealand’s tax legislation concerning foreign tax credits, mandatory disclosure to the IRD, and increased penalties for non-compliance.

Securities Commission case

In June 2007, Richwhite and Midavia Rail Investments, a partnership with Michael Fay, were accused by the Securities Commission of New Zealand of insider trading connected to Tranz Rail. They reached an out-of-court settlement amounting to NZD$20 million, without any admission of guilt.

Their joint announcement highlighted that the agreed sum was less than half of the amount initially claimed by the Commission and considerably lower than other comparable settlements, reflecting the potential risks the Commission faced if the matter had proceeded to trial.

America’s Cup and other sporting interests

Sir Michael Fay and David Richwhite were at the forefront of New Zealand’s initial three attempts at winning the America's Cup in 1987, 1988, and 1992, investing personally in excess of $100 million.

Following the 1988 "Big Boat" campaign, they briefly held possession of the cup before it was reclaimed by the San Diego Yacht Club through legal proceedings. New Zealand eventually secured the trophy in 1995, a campaign that did not involve Fay or Richwhite.

In 1988, their leadership also guided a team to triumph in the World One Ton Cup held in San Francisco, sailing the Bruce Farr-designed "Propaganda" (KZ 6161).

Fay and Richwhite provided financial backing to the Manu Samoa Rugby Team during periods of fiscal hardship prior to ownership reverting to the Samoa Rugby Union.

Philanthropy

David Richwhite has contributed to numerous charitable, cultural, and community projects, including:

• Acting as a benefactor for the "Play it Strange" Trust, with a lyric award named after him—the David Richwhite Lyric Award
• Supporting a high-performance rowing facility at the University of Otago
• Establishing and sponsoring the Fay Richwhite Corporate triathlon series across New Zealand and Australia
• Serving as patron for New Zealand’s presentation at the 2009 Venice Biennale
• Previously chairing the Ellerslie Flower Show
• Donating the KZ1 (yacht) to Auckland Maritime Museum
• Providing support for Women's Refuge, the Salvation Army, Starship Hospital, and Westpac Rescue Helicopter

Great Mercury Island

In 1978, Fay and Richwhite acquired Great Mercury Island, situated approximately eight kilometres off the eastern coast of the Coromandel Peninsula. The northern portion of the island is dedicated to sheep and beef farming, while reforestation efforts have transformed much of the southern area with pine and indigenous trees. Libby Richwhite has overseen planting more than 600,000 native trees alongside a conservation initiative aimed at protecting important Māori pā sites and cultural heritage.

The island’s facilities are occasionally utilized by organisations assisting vulnerable children. Additionally, a section of land is designated for scientific research focused on breeding bees resistant to the Varroa mite, a significant threat to apiculture worldwide.

On 30 November 2009, Great Mercury Island was the launch site for Rocket Lab’s inaugural successful flight of its suborbital Atea-1 sounding rocket.

Other pursuits

David Richwhite is a father of four and engages actively in fishing, hunting, and music. In 2022, his son Christopher was held in custody in Iran.