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The shake-up in the investment management sector continues with a second big merger in a week.
Wellington-based Jarden Securities and the National Australia Bank (NAB) will join a private equity firm Pacific Equity partners (PEP) to create a firm with $44 billion worth of funds under management or administration and advice.
Malcolm Jackson Photo: Supplied / FirstCape
The new business, to be called FirstCape, will combine Jarden's wealth business, the New Zealand operations of JBWere, currently owned by NAB, BNZ Investment Services, and Harbour Asset Management.
"We're excited to bring together four well-established, complementary businesses," FirstCape chief executive Malcolm Jackson said.
"Our focus is on client-adviser relationships that deliver personalised solutions to help grow and preserve wealth."
The new firm will have 113 investment advisers, $29b of funds under advice and administration and $15b of funds under management, including $5b of KiwiSaver funds.
NAB will own 45 percent, Jarden 25 percent, and receive a cash payment from PEP, which will hold 35 percent of the new firm.
Jackson said the benefits of the merger included better advice and services for clients, expansion of the BNZ KiwiSaver scheme, and savings from simplifying back room operations.
Last week, leading investment concern Forsyth Barr bought mid-sized fund manager Hobson Wealth.
