Outgoing ANZ chairman David Gonski is believed to be in line to take the position of independent chairman at the newly formed investment bank Barrenjoey Capital Partners.
It comes as the listed Magellan Financial Group announced today that it is backing the new venture that will count former UBS investment banker Guy Fowler as its executive chairman and former Challenger boss Brian Benari as its chief executive.
The new venture counts a long list of high-profile names in the business world as among its key participants, as expected, with the former Deutsche Bank Australia deputy chief executive John Cincotta as a founding partner, along with listed company director Matt Hanning and former UBS operative Chris Williams.
Mr Gonski — considered one of Australia’s most well connected businessmen — declined to comment on the speculation.
However, market analysts say that the move makes sense for the seasoned boardroom executive, who is currently a director of Sydney Airport.
Mr Gonski’s departure from the ANZ board was announced last year.
He is due to leave in October after six and a half years in the role.
Other business executives to be involved in Barrenjoey include BHP chairman Ken MacKenzie, who will be Barrenjoey’s senior strategy partner, while former Barclays Australia chief executive Cynthia Whelan will join as a strategic adviser.
Former UBS Australia boss Matthew Grounds has been expected to have a future involvement, although does not feature among the names initially launching the new venture that is anticipated to see the involvement of a number of newly hired investment bankers by around March next year.
While Barrenjoey is unlikely to be a threat to major US-based investment banks such as Bank of America, Citi, JPMorgan, Goldman Sachs and Morgan Stanley, which rely on their balance sheets to generate a large volume of work, the new competition is likely to prove an upset for others in the market such as Jefferies, Credit Suisse, UBS and Jarden, which has expanded into Australian investment banking this year with a number of high profile hires.
Backing the new Barrenjoey venture is the Australian listed fund manager Magellan, chaired by Hamish Douglass, and Barclays bank which will both be foundation investors.
The British bank Barclays has entered into a co-operation agreement with Barrenjoey, covering global product distribution, research, cross-border advisory and debt capital markets, as well as making available significant balance sheet capacity for Barrenjoey to support its clients.
Magellan will offer $90m of cash and 1.2 million Magellan shares, which will offer it a 40 per cent stake in Barrenjoey.
It will also offer a $50m working capital facility.
Barclays will offer $45m and will secure a 9.99 per cent stake in the venture.
The new venture will offer traditional corporate advisory transaction services, including equity capital markets, debt capital markets and leveraged finance solutions and a number of investment bankers around the market are understood to have been targeted for a role.
Staff will own 50.01 per cent of the venture.
Balance sheet support and underwriting capability will come from Barclays.
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