The yet-to-be-fully-formed FirstCape has emerged as a potential buyer of a stake in Fisher Funds, according to press across the Tasman.
National news publication, The Australian, reported earlier this month that the “newly merged JB Were and Jarden wealth manager backed by Pacific Equity Partners [PEP] is understood to have thrown its hat in the ring for Fisher Funds”.
Local sources in NZ have also confirmed a FirstCape tilt at Fisher was likely on the table as US private equity firm, TA Associates, looks to offload its roughly one-third share in the Takapuna-based fund manager.
TA put its interests in the $24 billion Fisher on the block late last year with other rumoured bidders including private equity funds Blackstone and Permira, based in the US and UK, respectively.
Toi Foundation – previously known as the TSB Community Trust – holds the remaining two-thirds of Fisher after acquiring the business in 2017 in a joint venture with TA.
Maria Ramsay, Toi chief, told BusinessDesk that the community trust was “not looking to sell its 66% majority ownership stake in Fisher Funds”.
PEP and Jarden – which own 35 per cent and 20 per cent, respectively, of FirstCape – were bidders for Kiwi Wealth, losing out to Fisher after the firm stumped up $310 million in debt-funded money for the formerly government-owned investment and KiwiSaver provider. Kiwi Wealth added about $8 billion to Fisher assets under management
Based on similar valuations, the TA piece of Fisher could also fetch over $300 million
Last week PEP raised A$1.5 billion for its latest buyout vehicle, Fund VII, the Australian Financial Review reported.
It remains unclear how a third share in Fisher would fit in the FirstCape blended family of the Jarden/JBWere NZ wealth advisory arms, BNZ investment funds (including KiwiSaver) and Harbour Asset Management.
“FirstCape doesn’t comment on market speculation,” a spokesperson for the group said.
Meanwhile, FirstCape is still wrapping up the formal merger details as the business, headed by Malcolm Jackson, looks to complete the deal by the end of this month.
As at last week, six of the 10 FirstCape entities listed on the NZ companies register were live including the overarching group business that names Jarden Wealth and Asset Management as 51 pe cent majority owner with National Australia Group NZ holding the remainder.
The National Australia Bank, BNZ parent, is slated to own 45 per cent of FirstCape under the deal unveiled late in December.
Last month BNZ fired all third-party managers (except Harbour) of Australasian assets in its KiwiSaver and other funds in phase one of the FirstCape makeover.
