Financial services firm Jarden says it has raised more than $60 million for acquisitions after its business grew more than 40% in 2021.
A press release from the employee-owned firm said it had a “record year” with strong performance across its divisions such as investment banking, brokerage, and wealth management.
The firm said it has received an “external commitment” for more than $60m in new funding from private family offices connected to the firm, located in Australia and New Zealand.
“The additional capital will enable Jarden to invest in new business and growth opportunities across both regions,” it said.
The capital contribution is understood to be in the form of a convertible note, rather than a direct equity ownership. Jarden is owned by current and former employees.
Kiwisaver play?
New Zealand Herald reported this morning Jarden and its advisers had approached Kiwi Group Holdings about a possible bid for Kiwi Wealth.
Kiwi Group owners, NZ Post, ACC and the Super Fund, are understood to be reviewing its ownership of the fund manager with NZ Post keen to focus capital on its core businesses.
Kiwi Wealth recently secured a second term as a default KiwiSaver provider and has grown its funds under management to more than $9 billion. It now has $6.2b in KiwiSaver accounts and is the sixth largest provider, trailing narrowly behind AMP.
If Jarden were to purchase Kiwi Wealth and enter the Kiwisaver market, it would need more than the $60m it has raised. The fund manager would be looking for bids above $150m.
However, Jarden said the strategic alliance it made with Japanese investment bank Nomura last year has added “considerable firepower to its balance sheet”.
Jarden Australia chief executive, Robbie Vanderzeil said firm had always been “entrepreneurial by nature” and the funding would allow it to invest in more opportunities.
“We look forward to continuing our rapid growth and further expanding our footprint,” he said.
Jarden chief executive, James Lee said there were “significant growth opportunities across public and private assets in New Zealand and Australia”.
Acquisition history
The press release noted the firm had invested in its wealth management and investment banking platforms over the past five years, including through acquisitions.
It was in talks to purchase a stake in retail equity research website Shareclarity last year, although no deal was announced publicly, and it bought Direct Broking from ANZ in 2018.
