Forsyth Barr has bought Hobson Wealth in an open secret officially confirmed today.
Headed by Warren Couillault, Hobson has been in play for the last couple of months with several parties understood to have run the ruler over the wealth management firm.
Hobson would add more than $4 billion under management and 35 advisers to Dunedin-headquartered Forsyth Barr chain.
At last count, Forsyth Barr reported about $20 billion under management and 200 advisers in its network. The largest NZ wealth advisory firm, Craigs Investment Partners, has just under 200 advisers and $28 billion in assets under management.
Couillault formed Hobson in 2016 leading a management buyout of the-then Macquarie NZ wealth business as the Australian owner exited. Macquarie retains an almost 6 per cent share in Hobson with two Couillault-controlled entities holding the balance.
“We have been considering the strategic growth alternatives for Hobson Wealth over the past couple of years, looking for ways we can enhance services for our clients and help scale the business,” Couillault said in a statement.
Hobson also has an almost 14 per cent stake in the Kōura KiwiSaver with Couillault holding a further 5.5 per cent shareholding in the scheme via another entity.
He was an early shareholder in the Generate KiwiSaver scheme (selling down in 2019) and Fisher Funds, where he also served as chief investment officer.
In addition to its wealth advisory network, Forsyth Barr runs the Summer KiwiSaver scheme and the Octagon funds management business.
Neil Paviour-Smith, Forsyth Barr chief, said in the release: “Over the last two decades we have grown significantly and with the Hobson Wealth team joining us we will have over 220 financial advisers across our network of 25 offices. We welcome the fresh perspectives that new people bring – they challenge us to keep evolving and improving how we deliver for clients. Most importantly, this latest acquisition, on the back of our recent launch of digital advice app Tempo, furthers our progress towards our goal of ensuring all New Zealanders have access to world-class advice to help them grow their wealth.”
Meanwhile, across the Tasman another wealth management tie-up involving Jarden NZ and the BNZ KiwiSaver scheme is reportedly close to the finish.
Under the proposals flagged in The Australian last month, the National Australia Bank (NAB) would pool its NZ wealth management assets – including the BNZ KiwiSaver and retail funds division and the JBWere advisory arm – with the Jarden NZ wealth management business. Jarden wealth and JBWere NZ would be valued at about $250 million apiece with the BNZ funds arm worth a further $150 million, according to Australian press.
In the mooted arrangement, NAB subsidiary, JBWere Australia, would own almost half of the combined entity with Jarden taking up 20 per cent (while freeing up about $60 million in cash to pay down debt) and Pacific Equity Partners (PEP) holding the remainder.
Earlier this week, Australian media reported the Jarden deal would be stitched up before Christmas. It is understood Jarden shareholders will vote on the proposal next week with a 75 per cent majority needed for approval.
Both PEP and Jarden were contenders in the battle for Kiwi Wealth in 2021 before losing out to Fisher Funds.
The Jarden assets would likely include the advisory network, Harbour Asset Management and the Hatch joint venture with FNZ.
JBWere NZ is a similar size to Hobson with 35 advisers in the business.
Forsyth Barr bought the Westpac NZ high net worth advisory business in 2020.
Last month a spokesperson for the group said in a statement: “From time-to-time Forsyth Barr enters into discussions with other companies with a range of possible outcomes. These conversations are commercial in confidence and for that reason we are not able to comment further on this matter.”