NAB enters NZ wealth management deal
National Australia Bank (NAB) has announced two of its New Zealand-based subsidiaries will combine with Jarden Wealth to create a new wealth management entity.
Under the new name FirstCape, the deal will bring NAB’s wealth manager JBWere New Zealand and its BNZ Investment Services businesses together with Jarden Wealth and Harbour Asset Management. It is expected to reach completion in June 2024.
The newly formed entity will see NAB, Jarden Wealth and Pacific Equity Partners (PEP) be its shareholders.
Both the Australian bank and Jarden Wealth will receive a cash payment along with a retained shareholding of 45 per cent and 20 per cent respectively. PEP will acquire a stake of 35 per cent.
FirstCape will unite a combined 113 financial advisers, NZ$29 billion of funds under advice and administration, and NZ$15 billion of funds under management.
According to the ASX statement, the deal will lead to operational efficiencies through added scale and will deliver enhanced outcomes for both clients and advisers.
Malcolm Jackson, chief executive of Jarden’s Wealth and Asset Management business, will lead FirstCape as its CEO.
NAB executive for private wealth and JBWere chief executive, 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.”
Craig Patrick, JBWere New Zealand chief executive, described the deal as an exciting opportunity to grow its advisory business and provide a wider range of tools to its advisers.
“The proposed transaction will not have a material impact on NAB’s cash earnings. On completion, NAB will recognise a gain on sale within statutory net profit,” the statement added.
AUTHOR
Jasmine Siljic
Recommended for you
The industry has regained the majority of losses seen in the previous week, with one licensee seeing a gain of six new advisers.
A recent financial advice market update has identified three factors that are holding businesses back from achieving their full potential, while a business consultant has shared where she commonly sees firms come unstuck.
Research from CoreData has seen trust levels in financial planners return to pre-royal commission levels, as this CEO underscores the impact of strong optimism in the advice industry.
While the August financial advice exam saw a lower pass rate of 62 per cent compared with 70 per cent in previous sittings, this expert believes it’s for a positive reason.
