TA Associates back on Aussie shores and hunting opportunities

Boston-based TA Associates has a reputation as a savvy investor in the area of wealth management.

Fresh from striking a deal to buy part of Kiwi investment bank Craig’s, private equity firm TA Associates is back on this side of the Tasman hunting for more opportunities.

There’s talk in the market that TA Associates has its eye on a big deal and is active in the local market.

There’s a number of opportunities which could catch its eye. One suggestion is the Melbourne-based wealth management advisory business Escala Partners, amid chatter that Focus Financial may be searching for an exit.

Jefferies has also been selling financial firm GBST on behalf of Anchorage Capital Partners.

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

Boston-based buyout fund TA Associates has a strong reputation as a savvy investor in the area of wealth management globally, and across the Asia Pacific region it’s headed by Ed Sippel with Andrew Tay as a director.

TA Associates owns 34 per cent of New Zealand’s Fisher Funds which has been for sale through Macquarie Capital and is chaired by Australian businessman David Clarke.

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

TA Associates was announced as the buyer of a stake in Craigs in December after it was said to be for sale – as flagged earlier by DataRoom – and said as part of the investment it would explore strategic mergers and acquisition opportunities.

Chaired by former CBA boss Ralph Norris, Craigs is one of the main names across the Tasman in the wealth management and advisory sector, and has a strategic alliance with the Australian arm of Wall Street bank JPMorgan.

It describes itself as one of New Zealand’s largest investment advisory firms, providing a range of services for private wealth, corporate and institutional clients with $NZ32bn of funds under advice.

The business also rates as one of the country’s top retail brokers.

It competes head-on with Forsyth Barr, which has a strategic alliance with Barrenjoey – and FirstCape, the business consisting of the previous Jarden Wealth and JBWere New Zealand businesses now partially owned by Pacific Equity Partners.

The deal is the third time that Craigs has been partially owned by offshore interests, as Deutsche Bank was previously a part owner.

Craigs bought out Deutsche Bank from its 49.9 per cent equity interest in the business in 2019 after the German lender announced a global retreat from equities.

Before that, Dutch bank ABN Amro owned half of the company and became the subject of a management buyout before Deutsche then bought in during 2010.

Before the TA Associates deal, it was owned by its directors and shareholders.

The interest in the Australian market comes as Australian-listed wealth manager Insignia Financial remains in the cross hairs of bidders Bain Capital and CC Capital, which some suggest may be moving on from Insignia.

It’s now in the early stage of carrying out due diligence on the $3bn financial group after signing a nondisclosure agreement.

A third private equity firm is said to be hanging around the edges of the contest.

Earlier, Brookfield was thought to have interest, but now there’s chatter it may be another private equity suitor.