MMC co-founder, Tom Reiher, has stepped down as managing director of the firm following the formal transition to new ownership last month as part of the global Apex Group.
Reiher ended his 20-year hands-on operational duties at the end of May, according to the latest MMC client newsletter.
“This brings to life the final phase of the succession plan for Tom, which has been in the works for a few years now,” the newsletter says. “Tom will remain connected with the business as an ambassador of the Apex Group for the New Zealand region.”
During a major growth spurt over the last five years, MMC has repeatedly shored-up executive ranks including the appointment of former Fisher Funds chief operating officer, Vedran Babic, as chief executive in 2019.
At the time, Babic replaced Reiher who in turn took over as managing director from fellow MMC co-founder, Robert Moss – the latter moving to a governance role as chair of the board.
Moss remains atop the MMC board, which has seen a shake-up under the new owners. Nicholas Happell, Apex APAC region head, and Leigh Ryland, MMC chief risk officer, are now directors while Reiher along with representatives of NZ private equity firm, Pencarrow – Philippa Weston and Nigel Bingham – resigned the various boards associated with the company.
Pencarrow owned half of MMC via a fund structure.
Paul Mersi stays on the MMC boards, however, fellow independent director, Carmen Vicelich, has resigned from the MMC Group Holdings entity.
The acquisitive Bermuda-based Apex bought MMC in a post-Christmas shopping splurge last year just months after purchasing the Australian Mainstream investment administration business for A$410 million.
MMC has about $100 billion under administration compared to A$300 billion for Mainstream, implying a like-for-like purchase price of at least $140 million.
In April this year the Overseas Investment Office (OIO) approved the Apex takeover of MMC.
“The Minister of Finance has decided that the investment is not contrary to New Zealand national interests,” the OIO ruling says.
Founded in 2002, MMC grew rapidly following the introduction of the portfolio investment entity and KiwiSaver regimes in 2007: after expanding into custody and KiwiSaver registry services from its core investment administration services, the company bought the Aegis wealth management platform from ASB in 2019 (later renaming it as MMC Wealth Management).
“MMC’s success to date is directly attributed to Tom’s passion, hard work and ability to inspire us all to deliver on his vision, always putting clients and people first,” the newsletter says. “And his entrepreneurial spirit and mantra of ‘impossible just takes a little more effort’ is ingrained in our business and the way we work.”
The latest update also reveals MMC Wealth Management has completed the transition of offshore assets held on the platform to a “single global custodian, National Australia Bank”.
“This means that although we remain broker agnostic our international equities are now held in custody with one provider. USD, GBP and AUD stock transfers have been completed,” the newsletter says. “We expect this to deliver further efficiencies and streamline the reconciliation efforts.”
Under ASB control, Aegis shared some administration services with ultimate owner, the Commonwealth Bank of Australia.