FirstCape has kicked off a long-awaited consolidation cycle with the surprise purchase of financial adviser services and platform business, Consilium.
In a move confirmed this morning, FirstCape will acquire all shares in the Christchurch-headquartered Consilium, headed by Australian Scott Alman.
The deal remains subject to “various conditions” before completion.
Along with the ownership change, Alman, who owns about 20 per cent of the company founded in 2012, has stepped aside as chief in favour of Louisa Yandle, currently general manager product and operations for the group.
However, Alman stays on as executive director with Consilium remaining a stand-alone brand in the FirstCape group, comprising Harbour Asset Management, BNZ KiwiSaver and investment funds and the Jarden/JBWere networks.
As reported last month, the FirstCape advisory groups will unify under the JBWere banner later this year. Harbour also oversees the BNZ KiwiSaver and funds.
Consilium has about $9 billion under administration in an FNZ-powered platform as well as Synergy discretionary investment management service (DIMS) suite, two small KiwiSaver schemes (KiwiWRAP and the just-launched Evidential) and a more than $1 billion funds business – also marketed under the Evidential brand – that badges two Dimensional Fund Advisors strategies.
In a statement, Malcolm Jackson, FirstCape chief, said: “This acquisition aligns with our strategic vision and strengthens our commitment to providing comprehensive wealth and asset management solutions for our clients.
“Both Consilium and FirstCape are focused on improving access to financial advice and growing KiwiSaver which were key drivers for the acquisition.”
The deal may also see the FNZ platform rolled out as standard across the Jarden/JBwere group.
FirstCape has been casting about for a significant purchase since officially formed early last year in a joint venture between Jarden, BNZ parent National Australia Bank and Australian private equity firm, Pacific Equity Partners.
Alman said in the release that there were “natural synergies” between FirstCape and Consilium.
“Consilium has been growing strongly over the past 13 years, continuously offering new and improved products and services for our clients,” he said.
The Consilium group reported a net profit after tax of $4.6 million for the 12 months to the end of March last year.