Barrenjoey Capital Partners announced its intention to merge with ASX-listed Magellan Financial Group to create a diversified financial services company operating across public and private markets. The combined entity will provide corporate finance, fixed income, equities, research, and investment management support to clients.
Following completion, Barrenjoey CEO Brian Benari will become Group CEO of the combined company, and Barrenjoey Chairman David Gonski AC will become Group Chairman. Guy Fowler and Matthew Grounds will continue as Co-Executive Chairs of Barrenjoey Capital Partners, Sophia Rahmani will remain Chief Executive of Magellan Investment Partners and Andrew Formica will become Deputy Chairman. Barrenjoey’s independent directors will join the Magellan board post-completion.
The combined group is expected to have a $2 billion AUD balance sheet, significant free cash flow and a more diversified client offering. On completion, Barclays’ shareholding will be limited to approximately 4.9% of Magellan’s share capital to simplify the impact of US regulatory requirements. Barclays Chairman of Investment Banking Paul Compton intends to join the Magellan board post-merger. Barrenjoey’s strategic alliance with Forsyth Barr will continue, and the firm said it will maintain its focus on community contributions, having committed more than $13 million AUD in donations and grants since capitalisation.
KEY QUOTES:
“This is a proud moment for Barrenjoey. Five years ago, a group of talented professionals came together with a vision to build an independent, Australian-headquartered financial services firm that could compete at the highest levels. From this start, Barrenjoey’s team have fulfilled their shared vision of servicing clients at a very high standard and being a great place to work. MFG has been part of our journey from the beginning of Barrenjoey as a founding investor. Joining forces provides an ideal platform for our next phase of growth together as a top tier financial services group, while ensuring our clients and our people remain at the centre of everything we do. I have been very honoured to have been the Chair of Barrenjoey over the last few years and am extremely excited and pleased to be the proposed Chair of the combined group going forward.”
David Gonski AC, Independent Non-Executive Chairman of Barrenjoey Capital Partners
“The merger with Barrenjoey marks a transformative step in MFG’s evolution, bringing together two highly complementary businesses to create an Australian financial services group with meaningful scale and breadth.”
Andrew Formica, Chairman of Magellan Financial Group
“This development is an endorsement of Barrenjoey’s long-term trajectory. We recently celebrated the five-year anniversary of the strategic partnership between Barclays and Barrenjoey and are excited by the opportunities that this next step presents. Our priority is to continue to serve clients in Australia with excellence by leveraging Barclays’ global capabilities and Barrenjoey’s local expertise.”
C.S. Venkatakrishnan, Group Chief Executive of Barclays
“The merger will benefit our clients, through deepening our global distribution, expanding our balance sheet and diversifying our product offering. We are particularly excited about the opportunities for our Private Capital arm who will bring together our expertise in private assets with MFG’s global distribution capability and infrastructure.”
Brian Benari, Chief Executive Officer of Barrenjoey Capital Partners
“Barrenjoey only exists because of the early support from our clients and the vision and commitment of our founding employees and their families. We would also like to acknowledge the support from our founding shareholders Barclays and MFG, including Hamish Douglass’ early support and vision. We are very excited about this next step and the opportunities that it provides for our clients and our staff.”
Guy Fowler and Matthew Grounds, Co-Executive Chairmen of Barrenjoey Capital Partners
