Jarden racks up $18m losses in first two years in Australia

The local arm of the New Zealand investment bank has made big moves in Australia since 2020. Revenue is rising quickly, but profits are still elusive.

Jarden has made a quick impression in the Australian market, but profits are elusive.

Investment bank Jarden has lost almost $18m in two years of operations in Australia, accounts lodged with the corporate regulator show.

Jarden, the Australian offshoot of the New Zealand investment bank, has been on a hiring spree over the past two years snapping up well-known names such as former UBS Australia co-head of investment banking Aidan Allen and well known capital markets banker Robbie Vanderzeil.

Its financial report for the year to December 31, sent to the Australian Securities and Investments Commission overnight, shows the firm’s revenue surging as it establishes itself in the competitive, but lucrative Australian M&A and deal-making scene.

Jarden recorded a $5.1m loss in 2021 from $76m revenue, compared with a $12.8m loss from $15m income in 2020 when the firm was hiring most of its prominent bankers.

The firm’s 2021 revenue included about $35m in advisory fees, according to the accounts, about $26m in commissions and margins and almost $13m of underwriting and placement fees.

Jarden’s deals last year included advising on the stockmarket listings of Peter Warren Automotive Group and the Endeavour Group drinks and pub business by Woolworths.

It also struck a strategic alliance with Asian global investment bank Nomura in 2021.

Mr Vanderzeil heads the Australian business of Jarden as chief executive, overseeing a team that also includes ex-Goldman Sachs managing director and head of equity capital markets Sarah Rennie and Ben Gilbert, formerly head of consumer research at UBS.

Other UBS alumni at Jarden include head of institutional equities John Spencer, general counsel SooJin Yoon and managing director of investment banking Dane FitzGibbon.

Jarden is part of its privately-held New Zealand parent, and many of its Australian staff own shares in the parent company after subscribing for equity via capital raisings.

Jarden recently said it had achieved a record financial result for its entire company in 2021 and that about 25 per cent of its 600 employees are based in Australia.

It has plans to open offices in Melbourne and Perth this year, adding to its Sydney base and presence in Brisbane.

In a recent statement, Mr Vanderzeil said: “Jarden has always been entrepreneurial by nature, and we believe there are more opportunities within the financial services industry that, with this funding, we can invest in and make a real difference for our clients. We look forward to continuing our rapid growth and further expanding our footprint.”

Jarden recently received an external commitment of about $55m in new funding from private family offices connected with the firm to invest in new business and growth opportunities in Australia and New Zealand.

The firm was also hired by global dairy giant Fonterra along with UBS to advise on a potential float of its Australian business last year. Both banks have also been involved in New Zealand automotive group Armstrong’s also investigating a potential float.