PEP will acquire a 35% stake in the business established by NAB and Jarden
Allens has advised Pacific Equity Partners (PEP) on its proposed acquisition of a 35% stake in New Zealand wealth management business FirstCape.
FirstCape is the product of combining Jarden Wealth and JBWere NZ with Harbour Asset Management and BNZ Investment Services Limited. Under the agreement signed by NAB and Jarden last month, NAB will retain a 45% interest in FirstCape in addition to obtaining a cash payment. Meanwhile, Jarden will retain a 20% share while also receiving a cash payment.
Jarden Wealth & Asset Management CEO Malcolm Jackson is set to be FirstCape’s inaugural CEO. Jackson confirmed in a PEP media release that JBWere, Jarden and BNZ will continue to run as is while Jarden Wealth & Asset Management divests from Jarden Investment Bank and becomes part of FirstCape.
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Practical completion of the deal is set for the first half of the year, pending regulatory approvals.
“PEP's investment in FirstCape typifies the ongoing resilience of financial sponsor activity we've seen in 2023,” Allens lead partner Noah Obradovic said. “Despite a relatively lean year for private equity, the back end of 2023 has been promising, particularly for highly complex carve-outs and take private opportunities. Going into the new year, although downside risks remain, we remain cautiously optimistic that activity will continue to pick up.”
A total of 113 advisors will be part of FirstCape. The entity will hold NZ$29bn in funds under advice and administration as well as NZ$15bn in funds under management. The funds under management will include NZ$5bn of KiwiSaver funds.
Allens advised on all Australian law aspects of the transaction. Obradovic led a multidisciplinary team that included the following:
M&A and capital markets
Terence Zhou (senior associate)
Jess Hodgson (lawyer)
Funds, super, and financial services
Simun Soljo (partner)
Virginia Wang (associate)