One of New Zealand’s largest planning and funds management groups, Spicers Portfolio Management, has bought a significant holding in Monitor Money.
One of New Zealand’s largest planning and funds management groups, Spicers Portfolio Management, has bought a significant holding in Monitor Money.
Under the terms of the deal, Spicers will purchase 50 per cent of Monitor Money’s parent Invest Assure Group, which also includes back office group Assure Services and Technology.
Both Spicers and Monitor Money are claiming this will create “one of the largest financial advisory groups in Australasia”.
Managing director of Monitor Money Tim Titheradge says the deal gives his group the capital to grow its business substantially in coming months. Monitor Money hope to swell numbers by “putting on 10 or 12 planners” within the year. It currently has about 20 planners.
“We actually made the decision to seek a partner 12 to 18 months ago and took it out to tender. We had five parties who were very interested. The reason we went to Spicers was because it was philosophically close to Monitor Money. There’s no great culture gaps,” he says.
Titheradge says Monitor Money was also attracted to Spicers because its majority shareholder, the Sterling Grace Corporation, is “more of an arm’s length capital provider” for the group. The Sterling Grace Corporation is a US-based investment vehicle which encompasses some of the investment activities of the Grace family. It owns “about 80 per cent” of Spicers, according to Spicers’ group managing director Craig Dawson.
Last year Dawson told Money Management his group was interested in expanding its distribution outside of New Zealand, particularly in Australia and the UK.
“We did get very involved in some negotiations in the UK which didn’t eventuate. Later on this year we’ll start actively pursuing other opportunities, in Australia and outside. The UK remains of interest to us,” Dawson says.
Spicers has $NZ1.5 billion in funds under management, including $NZ950 million in funds under the advice of its 55 planners. The combined Spicers and Invest Assure groups will have more than $A2.2 billion in funds under management.
Titheradge says the deal will not compromise the operating activities of Monitor Money.
“Our business will remain very distinct,” he says.
