Direct Capital in talks to buy Fisher Funds

Fisher Funds describes itself as one of New Zealand’s largest specialist investment managers. Picture: Bloomberg

The New Zealand private equity firm said to be in talks to buy Kiwi wealth management business Fisher Funds has been revealed to be Direct Capital.

DataRoom earlier reported a local buyout fund was around the hoop for the business after the sale process went quiet.

Direct Capital has invested in several New Zealand companies such as Mondiale VGL, Hiway and New Zealand King Salmon.

Fisher Funds describes itself as one of New Zealand’s largest specialist investment managers, with more than 250,000 New Zealanders investing in its KiwiSaver and managed funds.

It has been for sale through Macquarie Capital. Fisher Funds is 34 per cent-owned by private equity firm TA Associates and chaired by Australian businessman David Clarke.

It purchased Kiwi Wealth in 2022 for $NZ310m, creating a business with $NZ22bn of funds under management.

The business is among a number that have come up on offer across the Tasman, but tough economic conditions have left some buyers on the sidelines.

The pending sale comes as private equity firm Anchorage Capital Partners prepares to sell its fintech business GBST through Jefferies.

Anchorage purchased the wealth management operation from FNZ in 2021 for $250m and some consider super funds to be the most logical buyers. The demand for wealth management services is strong, with an ageing population seeking out advice.

GBST provides technology to meet investment platform needs for pension and retail savings providers in Australia, Britain and other international markets.

It offers registry and end-to-end solutions for fund and pension administration, with its flagship product Composer offering an integrated system for wrap platforms, master trusts, superannuation, pension and wealth managers.