National Australia Bank (NAB) and Jarden Wealth and Asset Management (Jarden Wealth) have agreed to combine their wealth and asset management businesses in New Zealand.
The proposed business combination will create a new advice and asset management business, dubbed FirstCape, with NAB, Jarden Wealth and Pacific Equity Partners (PEP) as shareholders.
It will combine NAB’s JBWere New Zealand and BNZ Investment Services businesses, with Jarden Wealth and Harbour Asset Management.
Under the terms of the deal, NAB and Jarden Wealth will receive an upfront cash payment, along with 45% and 20% shareholding, respectively.
PEP will obtain a 35% stake, in exchange for funding the cash payments to NAB and Jarden.
FirstCape will be led by a team comprising executives from JBWere New Zealand, BNZ, Jarden Wealth and Harbour Asset Management teams.
Jarden Wealth CEO Malcolm Jackson will be appointed as FirstCape CEO.
The proposed transaction is expected to be completed in June 2024, subject to the satisfaction of certain conditions, including New Zealand regulatory approvals.
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.”
JBWere New Zealand CEO Craig Patrick said: “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.”
The proposed transaction is not expected to have any material impact on NAB’s cash earnings.
The combined company would provide key benefits including the creation of a new wealth management business in New Zealand with a combined 113 advisers.
FirstCape will have NZ$29bn ($18bn) under advice and administration and NZ$15bn ($9.3bn) under management, including NZ$5bn ($3.1bn) of KiwiSaver funds under management.
It is expected to promote the growth of the BNZ KiwiSaver Scheme by expanding product offerings, using Harbour’s asset management capability and BNZ’s distribution network.
Furthermore, FirstCape is expected to improve operational efficiencies through scale and simplification of processes and systems, to enhance outcomes for clients and advisers.
BNZ CEO Dan Huggins said: “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.”
