Barrenjoey signs deal to share advice, capital markets services with Forsyth Barr

The investment bank’s clients will have access to advice and capital markets in New Zealand after the investment house signed a strategic alliance with Forsyth Barr.

Barrenjoey has inked a deal with Kiwi investment bank operator Forsyth Barr to share access to research, advisory and capital markets services for clients.

The trans-Tasman deal allows Barrenjoey to significantly escalate its coverage to investors beyond the 196 companies already covered by the investment house’s research team.

The strategic alliance comes after the two sides worked closely on the Ventia Services initial public offering, which listed the infrastructure business on both the ASX and NZX in November last year.

The two sides also share a lot of history, with a suite of Barrenjoey staff having history with Forsyth Barr before the inception of the Australian investment house upstart.

The deal between Barrenjoey and Forsyth Barr comes after the Australian investment house launched in September 2020 after Hamish Douglas’ Magellan and British investment Bank Barclays stumped up much of the cash to fund the business

Barrenjoey founding partner and chief executive Brian Benari said there had always been plans to provide capability for investment services for clients into New Zealand.

Mr Benari said it had become increasingly clear to Barrenjoey that Forsyth Barr offered “common clients” and a cultural fit.

“The similarities around those means the working together we’ve done to date has been very positive,” he said.

“If we can broaden delivery for our Australian clients, by leveraging the capacity Forsyth Barr has in New Zealand, then that’s beneficial for Barrenjoey as well as our clients.”

Forsyth Barr managing director Neil Paviour-Smith said clients from both firms would benefit from each other’s research.

“We are delighted to be collaborating with Barrenjoey and their team, who have established a market-leading institutional equities and corporate advisory business in Australia,” he said.

“Barrenjoey and Forsyth Barr have a complementary deep commitment to their local markets, and we look forward to the benefits this can offer our respective clients.”

Barrenjoey’s New Zealand tilt comes after increasing speculation the investment house was looking at the market.

The company, founded by high-profile former UBS bankers, has won several mandates in New Zealand, including selling Vodafone’s telecommunication towers for Infratil and Brookfield and floating the Carter Holt Harvey business.

The Australian’s DataRoom reported in March that Barrenjoey was considering a move into New Zealand.