New Zealand-based financial firm Jarden has injected $20m into its Australian subsidiary just days before its investment bankers here learn about their bonus payments for the past financial year.
Documents lodged with the Australian Securities and Investments Commission on April 5 show that Jarden issued 20 million new shares at $1 each, taking the total number of shares in the business to 137 million.
Jarden’s year end is March 31 and DataRoom understands that its Australian staff members were expecting to receive correspondence about bonus payments by the end of this week.
A Jarden spokesman said it actively managed capital across the group as part of the ordinary course trading and underwriting activities.
The company has been under close watch among those in the financial industry, because it was understood to have offered top dollar to recruit talented bankers in 2020, with estimates that around $12m was spent securing staff.
Sources have suggested recruits were offered pay guarantees lasting three years, although the company says it is not policy to offer guarantees, but it did offer some multi-year commitments and minimum bonuses for forfeited deferred compensation.
But since it made a splash on the Australian investment banking scene by hiring some of the most successful industry operatives, deal volume has declined amid a slowing economy after a mergers and acquisitions boom in 2021 during the global pandemic.
Jarden Group also issued new shares on November 24, which sources close to the organisation said was part of a move to pay staff, and raised about $NZ60m ($54m) through a convertible note last year, which was said to be for growth funding, although there were suggestions that the money was also used for staff payments.
Questions were being asked in March as to where the financial house will find the money to pay staff, particularly heading into an economic slowdown, when deal flow is greatly reduced.
The New Zealand-based company said in March it was not cutting jobs, but rather hiring.
But in recent days, Jarden is understood to have cut about seven staff members from its equities research team, although a spokesman added that it was committed to growing its Australia business, saying it “continues to enjoy significant success across Australia and New Zealand with recent mandate wins and strong equities trading performance”.
Ex UBS banker Robbie Vanderzeil was hired to run Jarden Australia, while Sarah Rennie joined from Goldman Sachs where she was head of equity capital markets for Australia and New Zealand, and both are considered to be top of their game in the equity capital markets arena.
Aidan Allan, who previously led investment banking at UBS Australia, was hired months later.
But last year, Jarden announced it was separating its investment banking arm from its private wealth business.
As part of a restructure, Robbie Vanderzeil was moved into the position of chairman after initially joining as the chief executive of Jarden Australia.
Aidan Allen and Sarah Rennie were made co-chief executives of the investment bank across Australia and New Zealand.
Jarden’s chief executive James Lee, who spearheaded the Australia expansion, has since left.
Its investment bank, which partners with Japanese lender Nomura, has more than 300 staff across Australia and New Zealand, advising on more than $100bn worth of deals, including recently, Brookfield’s buyout of Origin Energy.
There are 160 staff in Australia and 80 in front office advisory roles across the trans-Tasman business.
Market experts said that directorship changes and issuing of shares are commonplace in investment banking boutiques and private equity firms to align remuneration with performance.
But the changes continue to be closely watched at Jarden Australia at a time that global investment banks are shedding staff and with the demise of Credit Suisse, now in the hands of rival UBS.
According to figures from Refinitv, Australian investment banking activities fell 66 per cent compared to the first quarter period last year, with $US358m of activity generated.
Jarden company filings in New Zealand showed last year Mr Vanderzeil had a 1.37 per cent holding in Jarden Group, while Mr Spencer 1.24 per cent, Mr Allen 0.6 per cent Ms Rennie 0.85 per cent and Mr Fitzgibbon 0.75 per cent.
Chairman Bill Trotter had 10.1 per cent and chief executive James Lee 4.5 per cent.
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