Jarden probes staff harassment complaint as Barrenjoey sees founding partner exit

The investment bank in recent days conducted a session for staff on effective ways of tackling the issue of power imbalance.

Like Barrenjoey, Jarden is seeking to take business from established firms. Photographer: David Gray/Bloomberg

Jarden has started a probe into a workplace behavioural issue involving senior staff members at the investment bank.

Jarden is investigating complaints related to workplace harassment and conduct, including in its Sydney office, to determine whether action should be taken, sources told The Australian.

One of several lines of inquiry at the firm concerns the conduct of two senior bankers in the equities and research division. This was prompted by a complaint made by a female employee.

A spokesman for Jarden declined to comment on Tuesday. The firm in recent days conducted a session for its senior staff – led by head of investment banking, Aidan Allen – on effective ways of tackling the issue of power imbalance.

In Australia, Jarden is led by ex-UBS stalwart Robbie Vanderzeil, who was hired in 2020 to spearhead the New Zealand-based firm’s local operation.

Jarden is not the only new entrant to Australian investment banking to confront a string of operational challenges.

It has also been a bumpy road for Barrenjoey – which, like Jarden, is seeking to take business from established firms.

Barrenjoey, led by former Challenger chief executive Brian Benari, has had a bumper period for merger and acquisition advisory work but is facing some challenges as it seeks to ramp up in areas including prime brokerage and fixed income.

The bank’s head of equity financing, James Jennings – a founding partner who is leading the firm’s push into prime brokerage – has left the firm. He declined to comment on his departure when contacted on Tuesday.

Mr Jennings’ LinkedIn profile notes that he joined the firm in 2020 after a 14-year stint at Deutsche Bank, where he was head of global prime finance for Australia and New Zealand.

His exit came ahead of Barrenjoey on Monday paying junior staff their bonuses. The bonus payments did not extend to all senior bankers, according to sources. A sizeable number of senior bankers were told bonus payments would not be forthcoming this year as the firm took a longer-term view of performance.

Staff own just shy of 50 per cent of Barrenjoey.

A Barrenjoey spokesman said: “Through this bonus season we’ve seen the strength of the staff ownership model in action with the departure of only one staff member to a competitor.”

While Barrenjoey is led by Mr Benari it also counts former UBS Australia boss Matthew Grounds and lieutenant Guy Fowler among its most senior ranks.

Analysts and industry participants will gain more information on how the firm is tracking when investor Magellan Financial reports earnings on Wednesday.

Barclays initially owned a 10 per cent stake in Barrenjoey alongside Magellan, which had a 40 per cent stake. Barclays in May increased its Barrenjoey stake to 18.2 per cent by subscribing to $75m of new capital. That diluted existing shareholders.

At Jarden, the latest accounts lodged with the corporate regulator show the bank lost almost $18m in two years of operations in Australia. Its financial report for the year to December 31, sent to the Australian Securities & Investments Commission in late March, shows the firm’s revenue rising rapidly after an aggressive hiring program.

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 filing shows.

The firm’s 2021 revenue included advisory fees, commissions and margins, and underwriting and placement fees.

Jarden’s deals last year included advising on the stockmarket listings of Peter Warren Automotive Group, while in 2022 it flanked IFM Investors in its pursuit of Atlas Arteria which included a share raid.

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

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