US private equity player, TA Associates, has taken a ‘strategic’ 50 per cent stake in Craigs Investment Partners in a deal announced this morning.
“Under the agreement, Craigs’ existing employee and director shareholders will retain 50 percent ownership of the Firm, partnering closely with TA,” according to a release.
“… The agreement remains subject to certain approvals being obtained, including Court approval, Craigs’ shareholder approval and Overseas Investment Office (‘OIO’) consent. Settlement is expected to occur late in the first quarter of 2025. Financial terms were not disclosed.”
TA has ownership stakes in Fisher Funds, Russell Investments, Apex Group (which houses the former MMC and Implemented Investment Solutions businesses) as well as Betashares.
Simon Tong, Craigs chief, said in the release that TA was an “ideal partner to support Craigs’ growth ambitions and ongoing commitment to client outcomes given its significant global experience investing in wealth management, and its strong understanding of the regional market”.
Tong said the deal would also provide access to “TA’s international network, best practices and insights will help us elevate our services while maintaining the personalised approach that sets us apart”.
Craigs is the largest wealth management network in NZ by assets under management (of about $32 billion).
The group also signed a partnership agreement with JP Morgan Asset Management earlier this year to provide research and product support.
Last month, the Australian distribution group, Ironbark, was also rumoured to be buying the Craigs business.