Nicola Forrest establishes new foundation

Nicola Forrest has signed up two experienced Minderoo executives as co-directors of a new charitable foundation but says she remains committed to her philanthropic endeavours with ex-partner Andrew Forrest.

Mrs Forrest, who is one of Australia’s wealthiest individuals with an estimated net worth of $23 billion, registered Coaxial Foundation Ltd with the Australian Securities and Investments Commission on January 11 this year.

Its constution states that it has been established to pursue charitable purposes including early childhood education and development, community wellbeing and promoting gender equality.

Mrs Forrest's co-directiors are Jay Weatherill and Bree Fraser.

Mr Weatherill is a former premier of South Australia and currently chief executive of the Thrive by Five initiative, which is focused on early childhood education.

Thrive by Five is backed by the Forrests' multi-billion-dollar Minderoo Foundation and, of all its programs, is the one most closely associated with Mrs Forrest.

Ms Fraser worked for Minderoo Foundation and the Forrests' private investment company, Tattarang, for eight years, including as chief financial officer prior to her resignation in May last year.

The registration of Coaxial Foundation follows the establishment of two similarly-named private companies last June: Coaxial Private Pty Ltd and Coaxial Ventures Pty Ltd.

Coaxial Ventures was used by Mrs Forrest to acquire a direct stake in ASX company Fortescue Metals Group, as part of her separation from Mr Forrest.

The two private companies have family members as directors: Mrs Forrest and her three children, Grace, Sophia and Sydney.

Neither Minderoo nor Mrs Forrest have commented on the purpose of Coaxial Foundation.

However, its establishment as a public company and the recruitment of two experienced directors indicates Mrs Forrest sees it having a big role, providing a vehicle for her to pursue her own philanthropic interests in tandem with Minderoo.

The formation of Coaxial Foundation comes just a few weeks after Minderoo Foundation changed the way it reports to the Australian Charities and Not-for-Profit Commission.

Historically it bundled together two entities and reported as Minderoo Foundation ACNC Group.

That entity voluntarily revoked its charity status late last year, shortly after Minderoo revoked the registration of an internal ‘public benefit institution’.

In future it will report to the ACNC as Minderoo Foundation Limited as trustee for the Minderoo Foundation Trust, in what is effectively a simplification.

In a joint statement to Business News, Mrs Forrest and Mr Forrest said they continued to work together through Minderoo.

"We remain committed to driving Minderoo Foundation together and building on the foundation’s now nine billion dollar endowment,” they said.

“As evidenced by our donation of 220 million Fortescue shares – one-fifth of our shareholding – to Minderoo last year, we want to ensure the foundation’s philanthropic work will be sustained for many decades to come.

“We will continue to donate our material wealth to create lasting change for the greatest possible good.”

The value of their endowment has risen with the market price of Fortescue shares.

When they announced the donation of 220 million shares last June, they were trading at about $22.70 apiece, or $5 billion in total.

The same shares are now worth about $29 apiece, or $6.4 billion.

That is on top of Minderoo’s existing assets, including Fortescue shares, which were valued at $2.1 billion as at June 30 2022.

While Minderoo has grown in size, it has also narrowed its focus, announcing last year it would have just three focus areas – communities, oceans, and gender & equality – while also pursuing what it calls impact missions.

It had previously listed a dozen initiatives and programs.