A group of Gareth Morgan Investments (GMI) foundation staff is set to launch a new ultra high net-worth wealth management business with their former boss as seed client.
The Wellington-based Prosper Asset Management features two GMI originals as owners – Robert Taylor and David Bruce – along with influential financial services recruitment specialist, Liza Patel, head of LinchPin Consulting.
NZ wealth management veteran, Tracey Berry, has also joined the Prosper board “providing strategic direction and support to the business, however, we anticipate her involvement to become more active over time”, a spokesperson for the group said.
Berry, currently TSB head of compliance, has a more than 20-year career in the upper echelons of NZ bank wealth management firms including a nine-year split shift at Kiwibank.
Following a three-year turn as head of the Kiwibank wealth division over 2008 to 2011 – a role sandwiched between similar gigs at first Westpac then BNZ – she returned to the government-owned bank in 2012, later serving as GMI chief for a year.
Kiwibank bought the GMI investments and KiwiSaver business in 2012 for about $50 million, eventually housing it under the Kiwi Wealth brand. As reported earlier this year, Kiwi Wealth is now on the block with a number of potential buyers circling the $9 billion plus firm.
Last year Kiwi Wealth backed away from efforts to build a wholesale investment division to focus on its KiwiSaver and retail funds business. It is understood the Gareth Morgan family office represented a significant portion of the Kiwi Wealth wholesale assets under management.
As well as pocketing profits from the GMI sale, Morgan was a seed investor in the Trade Me business founded by his son, Sam Morgan, sold to Fairfax in 2006 for about $700 million in a landmark deal that minted several multi-millionaires.
According to a statement, Prosper will “offer an independent multi-family office solution and wholesale investment option that will provide global access and bespoke investment strategy and services” targeting the burgeoning high net-worth and ultra high net-worth sector in NZ.
Taylor, Bruce and Patel own a third each of Prosper, which joined the Financial Services Providers Register last September as a wholesale-only business offering advice, administration and a discretionary investment management service (DIMS).
“This highly motivated team are looking forward to delivering a service not seen in New Zealand previously, through smarter options, strategic partnerships, economies of scale, a more nimble and unashamedly active approach,” the release says.
According to the Prosper spokesperson, clients will have access to a broad range of investments based on individual needs.
“Prosper will offer a global equities wholesale DIMS service, which will leverage off the portfolio construction and management currently undertaken for Gareth’s family office,” the spokesperson said.
“If a client wishes to have a balanced mandate, fixed income management will be via a domestic partnership. In the event, clients have their own investment capabilities, Prosper will provide back-office support, access to markets and trusted independent advice.”