The deal is expected to be completed mid-next year
A new wealth and asset management business is set to launch in New Zealand through a proposed transaction by NAB and Jarden Wealth and Asset Management.
The collaboration will see the integration of NAB’s JBWere New Zealand and BNZ Investment Services with Jarden Wealth and Harbour Asset Management, forming the advisory and asset management entity, FirstCape.
Ownership structure and strategic partnership
Under the agreement, NAB and Jarden Wealth will each receive cash payments, retaining 45% and 20% ownership, respectively, while Pacific Equity Partners (PEP) will acquire a 35% stake.
“We’re pleased JBWere New Zealand will be part of a leading asset management and wealth advisory business,” said Michael Saadie (pictured above left), NAB executive private wealth and CEO JBWere. “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.”
Key benefits for investors and clients
The proposed transaction offers several key benefits, including the establishment of a wealth management business in New Zealand with 113 advisers overseeing $29 billion in funds under advice and administration, $15bn in funds under management, and $5b in KiwiSaver funds.
Additionally, it provides an opportunity to expand the BNZ KiwiSaver Scheme by leveraging Harbour’s asset management capabilities and BNZ’s distribution network. The collaboration aims for operational efficiencies through scale, simplification of processes, and enhanced outcomes for clients and advisers.
“This is an exciting opportunity to grow the JBWere New Zealand advisory business and provide JBWere New Zealand advisers a wide range of advice tools to continue to offer a high-quality advice proposition to our clients,” said Craig Patrick, CEO JBWere New Zealand.
“From people saving for retirement or their first home through KiwiSaver, to high net worth, institutional and not for profit clients – BNZ’s relationship with the new entity is expected to significantly enhance BNZ’s ability to meet the wealth management needs of our customers,” BNZ CEO Dan Huggins (pictured above right) said.
Leadership for the future
A seasoned management team, including executives from JBWere New Zealand, BNZ, Jarden Wealth, and Harbour Asset Management, will spearhead the new entity. Malcolm Jackson, currently the CEO of Jarden’s wealth and asset management business, will assume the role of CEO.
The transaction is subject to regulatory approvals, with completion expected by June 2024.
To see the NAB announcement, click here. To read the ASX media release, click here.
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