Government-owned investment house, Kiwi Wealth, is understood to be on the market with at least a couple of potential buyers circling, according to multiple industry sources.
The Wellington-headquartered investment firm has grown from about $1.5 billion in 2012 when Kiwibank purchased the-then Gareth Morgan Investments (GMI) to more than $9 billion today.
The approximately $6.5 billion Kiwi Wealth KiwiSaver scheme was recently reappointed as a default provider, receiving an estimated extra $390 million and 37,000 plus members following the regime shake-up initiated in December 2021.
From December 1 last year the five removed default providers have been transferring assets and members to the six newly approved schemes.
Kiwibank paid about $50 million for the GMI business in 2012, eventually rebranding the KiwiSaver and private portfolio manager as Kiwi Wealth under a new corporate structure.
Kiwi Wealth now sits under the Kiwi Group Holdings (KGH) umbrella that also shelters Kiwibank, Kiwi Insurance and mortgage-broker NZ Home Loans. Last November KGH approved the sale of Kiwi Insurance to health insurer nib NZ for $45 million in a deal set to complete this quarter.
Ultimately, KGH is a government-owned entity via several shareholders including NZ Post, the NZ Superannuation Fund and the Accident Compensation Corporation.
In a statement, a KGH spokesperson said: “We don’t comment on any such market speculation. Kiwi Wealth has performed strongly over recent years and KGH values its contribution to the Group.
“While KGH assesses the performance and strategic fit of its assets from time to time, there’s nothing to announce about any assets.”
Kiwi Wealth sold its US share-broking platform, Hatch, to FNZ in October 2021. Former ACC chair, Paula Rebstock, leads the five-member KGH board.
