Michael Fay (banker)

Sir Michael Fay
Sir Michael Fay
Born	April 10, 1949 (age 77); Auckland, New Zealand
Occupation(s)	Merchant banker, yachtsman
Known for	Merchant banking, America's Cup challenges
Notable work	Co-founder of Fay Richwhite; 1988 America's Cup challenger skipper

Adapted from the English Wikipedia article Michael Fay (banker), available under CC BY-SA 4.0Updated 11 August 2025

Sir Humphrey Michael Gerard Fay (born 10 April 1949) is a prominent New Zealand merchant banker and partner at the merchant banking firm Fay Richwhite. As of 2017, his net worth surpassed NZD 920 million, placing him among the country's top ten wealthiest individuals. Fay amassed a significant portion of his fortune during the late 1980s and early 1990s, playing a notable role in the economic restructuring initiatives implemented by the Fourth Labour Government of New Zealand.

Early life and family

Michael Fay was born in Auckland on 10 April 1949. His education includes attending St Peter's College, Auckland and later St Patrick's College, Silverstream. He graduated with an LLB degree from Victoria University of Wellington in 1971. In 1983, he married Sarah Ann Williams, and together they have three children.

Fay Richwhite

Alongside David Richwhite, Michael Fay accumulated wealth through a series of privatisation deals and asset exchanges between 1986 and 1993. Their ventures involved entities such as European Pacific, Capital Markets, and their own firm Fay Richwhite, as well as former government-owned companies like Bank of New Zealand, Tranz Rail, and Telecom New Zealand. These transactions also encompassed managing pension funds associated with these assets.

One significant deal was their advisory involvement in the sale of New Zealand Rail Limited to foreign investors. Following this, Fay and Richwhite acquired a 31.8% ownership stake in Tranz Rail, which subsequently triggered an insider trading investigation by New Zealand regulators.

Securities Commission case

In October 2004, the Securities Commission of New Zealand brought accusations against Richwhite and Midavia Rail Investments—an entity jointly owned by Fay and Richwhite—alleging insider trading. The claim stated that Richwhite alerted Midavia to offload $63 million worth of Tranz Rail shares prior to the disclosure of financial troubles. By June 2007, Midavia resolved the matter by paying $20 million in what became Australasia’s largest insider trading settlement to date. This settlement was reached without any admission of wrongdoing.

America's Cup

Fay played a key role in backing New Zealand’s inaugural America's Cup challenge in 1987, where the team advanced to the challenger's final but were ultimately defeated by a US squad from San Diego.

In an unprecedented move in 1988, Fay launched a challenge against the defending San Diego Yacht Club without observing the typical three to four year waiting period. His legal advisors scrutinized the original Deed of Gift, which lacked stipulations regarding timing or boat classifications. He financed the construction of KZ 1, a large monohull yacht that complied with the Deed but was considerably larger than traditional 12-metre class vessels. The American defenders, led by skipper Dennis Conner, countered with the multihull catamaran Stars & Stripes (US-1). After court rulings confirmed both yachts met Deed requirements, Fay participated aboard KZ 1 during the 1988 America's Cup. The multihull Stars & Stripes won decisively. Although Fay’s litigious strategy attracted criticism, it ultimately contributed to enhanced governance and protocols for future America's Cup challenges.

In recognition of his contributions to merchant banking and yachting, Fay was knighted in the 1990 Queen's Birthday Honours.

He was also inducted into the America's Cup Hall of Fame in 2002.

Sport and Residence

Fay serves as the chairman and financial sponsor of the Samoa national rugby union team. Currently living in New Zealand, he co-owns Great Mercury Island alongside David Richwhite. In 2014, they jointly contributed $750,000—an amount matched by the Department of Conservation—to initiate a project aimed at eradicating pests from the island.

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