Andrew Schwartz is the Co-Founder and Group Managing Director of Qualitas, one of Australia's largest alternative real estate investment managers. Alternative debt providers are a relatively new asset class on the ASX. As banks move away from lending to non residential real estate, the likes of Qualitas have stepped in... and done so very successfully. In Part A we discuss what the impact of rising interest rates on Qualitas and step through the last major rates cycle from 2007 to 2010... there are some parallels to today. Andrew also talks about how Qualitas manages risk and balances that with generating returns for clients. Qualitas has approximately $5bn of funds under management, last financial year deployed $1.9bn of capital and was listed on the ASX in December, 2021. Ethical Partners owns Qualitas shares.

3 min 0 secs Balancing risk and return

4.10 Starting Qualitas during the GFC

10.28 Dealing with problem loans and impairments

14.02 The impact of rising interest rates on Qualitas

16.04 Comparing the current rate cycle to the 2007 - 2010 period

22.50 Fertile ground

26.35 Current day opportunities

28.43 Deep value investing DNA

See omnystudio.com/listener for privacy information.

In Part B of the discussion, Margo Ward of KidsXpress and Paul Hines of GSA talk of their respective organisations’ relationship with the Roosters rugby league team. This relationship seems to fit neatly into the cultures of each organisation, while initially upon first glance it may not appear a likely fit. It just goes to show, you never really know what types of organisations can work well together. Margo and Paul speak of their perspectives on leadership and provide insights into attributes they look for when hiring a new person for their firms. Enjoy Pat B. Part A received an incredible response from listeners.

Highlights:

1 min 54 Paul’s view on the insurance industry

7.39 GSA’s relationship with the Roosters rugby league team

9.50 Paul’s bond with coach Trent Robinson

11.58 KidsXpress and the Roosters

15.22 Paul and Margo on good leadership

16.25 Culture starts and finishes with leadership

17.00 Would I buy from this person? Are they genuine?

24.54 Have I done enough? Feeling a little lost…

29.50 Rob Kelly or John Hewson?

See omnystudio.com/listener for privacy information.

Margo Ward and Paul Hines Co-Founded KidsXpress in 2005. An unlikely meeting on a Contiki Tour in Europe sowed the seeds for a unique partnership and the creation of Margo’s vision… the world-first KidsXpress program. The program combines music, art and drama therapies for disadvantaged children. But more than that, Margo and Paul integrated KidsXpress into the culture of GSA, a leading Sydney based insurance broker. The partnership is unique with both organisations benefitting. Margo now sits on the Chubb Australia Board as a Non-Executive Director offering a very different perspective to the current challenges within the insurance and underwriting markets. Paul is adapting to the Executive Chair role post the sale of a majority stake in GSA to ASX listed Steadfast. These two remarkable people are trailblazers on leadership and culture creation. The business model they have created is ahead of its time. There is something to learn for all business leaders from this discussion.  Enjoy Part A. Part B out soon.

Highlights:

4 mins 22 secs: Paul’s special place

8.09 The start of KidsXpress

11.03 “That”dinner

13.55 Margo “joins” GSA

15.42 Our values… one of which is “being human”

18.22 This is what leadership looks like

20.20 Talking to culture… how do you define it and why is it important

26.30 “Rights and responsibilities”

27.43 Leadership has to show vulnerability and trust

32.38 Margo and the Board of Chubb Australia

See omnystudio.com/listener for privacy information.

In Part B of an honest and open discussion, Daniel talks to us about campaigns – something Thankyou does so well and the successful campaign in getting Thankyou products into Coles and Woolworths all those years ago. We touch on "No Small Plan" which is as bold as its name suggests. It sounds like we will hear more about that soon. And if that’s not enough, Thankyou is also looking to revolutionise the whole giving model. In our standard questions, Daniel’s take on leadership is fascinating. Daniel Flynn is the Managing Director of Thankyou. He co-founded Thankyou at the age of 19, and now 12 years later, Thankyou’s products are stocked by major retailers in Australia, with every product contributing to helping end global poverty.

See omnystudio.com/listener for privacy information.

Daniel Flynn is the Managing Director of Thankyou. He co-founded Thankyou at the age of 19, and now 12 years later, Thankyou’s products are stocked by major retailers in Australia, with every product contributing to helping end global poverty. Daniel and the team are business innovators, they are marketing disruptors and they are very unconventional. They are also sustainability leaders - an important aspect of the business we talk about. In an honest and open two part discussion, Daniel talks to us about how Thankyou has changed and the new challenges posed by an evolving competitor response. We also speak about campaigns – something Thankyou does so well and the successful campaign in getting Thankyou products into Coles and Woolworths all those years ago. We touch on "No Small Plan" which is as bold as its name suggests. It sounds like we will hear more about that soon. And if that’s not enough, Thankyou is also looking to revolutionise the whole giving model. Enjoy the discussion as much as we did.

See omnystudio.com/listener for privacy information.

Shayne Elliott has been the CEO of the ANZ Banking Group for over six years. There are perhaps no businesses in Australia that have more influence on Australian families than the “big four” banks. He speaks of crisis management and how past experience placed him in good stead for recent economic challenges. He reminds us that customers never forget how you treat them in times of crisis. He talks of the challenges of transitioning away from coal, oil and gas lending and towards sustainable lending which he sees as a net growth opportunity…. and how important it is to lighten the load – the sale of 25 businesses has played an important role in simplifying the bank.

See omnystudio.com/listener for privacy information.

Nicholas Moore is a former CEO of Macquarie Group. He retired in 2018 after 32 years at Macquarie, including 10 years as CEO. Nicholas tells us how one of the first things that he did at the depths of the GFC was to ensure the Macquarie Foundation was well funded. Nicholas talks about the Banking Royal Commission, his role in regulating the regulators and the unique role he played in helping to manage the Commonwealth’s risk relating to the Virgin Australia insolvency and eventual sale. But there is a lot more to Nicholas Moore than his achievements at Macquarie and his financial markets involvement. He talks about his role as Chair of the Smith Family, his thoughts on education for young people, his love of history and the influence of his parents on his career.

See omnystudio.com/listener for privacy information.

Nathan is the Investment Director and Co-Founder of Ethical Partners Funds Management. He shares with us his investment philosophy – the rules by which he directs and guides investment decisions at Ethical Partners and includes several company specific case studies. He takes us back to (almost) the days of the “chalkies” at the ASX and a fortuitous rendezvous on the corner of Pitt and Hunter Streets in Sydney. He explains how two stints at Perpetual and time at start up 452 Capital has placed him in good stead for Ethical Partners. He takes us through how to balance performance and ethical considerations in making investment decisions and explains the EPORA (while being careful to not take credit for the acronym). Finally we find out what he looks for in an investment analyst, what he is reading at the moment and why it is important to know what you don’t know.

See omnystudio.com/listener for privacy information.

Stuart Diver (Part B): Stuart Diver is a Senior member of the management team at Event Hospitality (EVT:ASX), as GM of Thredbo Resorts. He is a household name as the sole survivor of the tragic landslide at Thredbo Village in 1997 that took the lives of 18 people. In Part B of our discussion, we walk through how Stuart and the Event team have navigated through the pandemic and how Thredbo has adapted as a business. We learn more about how Event Hospitality is facing into the threats and opportunities from climate change, particularly with respect to an alpine tourism asset. Finally, Stuart walks through his charitable interests, those who have inspired him, including Alan Rydge as Chairman of Event, and our usual pop quiz.

See omnystudio.com/listener for privacy information.

Stuart Diver (Part A): Stuart Diver is a Senior member of the management team at Event Hospitality (EVT:ASX), as GM of Thredbo Resorts. He is a household name as the sole survivor of the tragic landslide at Thredbo Village in 1997 that took the lives of 18 people, including his wife Sally. In Part A, Stuart outlines his early life as a young adventurer and his growing passion for the mountains, particularly Thredbo, and his journey from labourer and ski instructor to that of General Manager of the entire resort. Thredbo is a crucial part of the listed group, Event Hospitality, and Stuart provides some insights around his management style and meshing his entrepreneurial spirit into a large listed group. Part A ends with a generous explanation of how Stuart mentally and physically survived the events in 1997 and how that has helped shape his resilience in life and in business.

See omnystudio.com/listener for privacy information.