Billionaire Mario Verrocchi, co-founder of Chemist Warehouse, has become a major shareholder in HMC Capital, the asset management firm founded by David Di Pilla. Verrocchi’s stake reached 5.08 per cent on October 8, equivalent to 20,973,783 shares, according to a recent disclosure. HMC shares were last valued at $3.07 each. HMC Capital is known for its high-conviction investment approach through HMC Capital Partners Fund 1 and counts holdings including Baby Bunting, property development giant Lendlease, and Ingenia Communities. The firm played a key advisory role in the $8.8 billion deal under which Chemist Warehouse went public via a reverse takeover in February.
The investment follows a period of significant wealth growth for the Verrocchi family after Chemist Warehouse’s merger and backdoor listing with Sigma Healthcare in February. The Financial Review Rich List estimated their wealth rose 190 per cent to $9.8 billion in May. Verrocchi, along with fellow Chemist Warehouse co-founders Jack and Sam Gance, received approval in August to sell down shares after Sigma’s annual results. It was reported that the Gances and Verrocchi sold approximately $729 million in shares over two days in late August.
Other figures connected to Chemist Warehouse have also realised substantial gains. Damien Gance, the departing chief strategy and business development officer, has reportedly sold around $800 million of shares since the demerger. Danielle Di Pilla, a Sigma director, sold 29 million of her 105 million shares in May for approximately $90 million. Furthermore, about 37 per cent of the unrestricted shares, valued at $13.8 billion, have changed hands since the February listing.
Despite HMC’s prior successes, including its involvement with Chemist Warehouse, the company has faced increased investor scrutiny. Its share price has declined by over 69 per cent in the past year amid concerns about capital raising and growth sustainability. Hedge funds have also increased their short positions, with about 4.3 per cent of shares currently loaned out.
