National Australia Bank (NAB) and Jarden Wealth and Asset Management have agreed to merge their wealth advice and asset management businesses in New Zealand into a newly created entity called FirstCape.
The new entity will have a combined 113 advisors and NZ$29bn ($18bn) of funds under advice and administration.
FirstCape will oversee NZ$15bn ($9.3bn) of funds under management, including NZ$5bn ($3.1bn) of KiwiSaver funds under management.
KiwiSaver is Bank of New Zealand’s voluntary savings scheme to help customers with retirement.
NAB, Jarden Wealth and Asset Management, and Pacific Equity Partners (PEP) will be the shareholders of FirstCape.
According to the terms of the agreement, NAB and Jarden Wealth and Asset Management will both receive a cash payment and retain ownership stakes of 45% and 20%, respectively.
Pacific Equity Partners will acquire a stake of 35%, with its investment used for funding the payments to NAB and Jarden Wealth and Asset Management.
NAB private wealth executive and JBWere CEO Michael Saadie said: “We’re pleased JBWere New Zealand will be part of a leading asset management and wealth advisory business.
“At the same time, we are committed to continuing to grow our JBWere business in Australia, which is a critical part of NAB’s integrated High Net Worth offering.”
FirstCape will bring together Jarden Wealth and Harbour Asset Management and NAB’s JBWere New Zealand and BNZ Investment Services.
By utilising Harbour Asset Management’s capability and BNZ’s distribution network, the transaction will help grow the KiwiSaver scheme through the expansion of product offerings.
Jarden Wealth & Asset Management CEO Malcolm Jackson, who has been appointed as FirstCape’s CEO, said: “Our focus is on client-adviser relationships that deliver personalised solutions to help grow and preserve wealth.
“Through this we will continue to build New Zealand’s leading wealth advice and institutional and retail asset management businesses.”
Subject to New Zealand regulatory approvals and other conditions, the transaction is expected to be completed by June 2024.
