Talk of disquiet ‘A-grade garbage,’ Jarden banking boss says

Governor Phillip Tower, where Jarden is headquartered. Picture: Brendon Thorne/Bloomberg

One of Jarden Australia’s most senior figures has taken the unprecedented step of going public to hose down speculation of disunity among the investment bank’s ranks.

There’s certainly been heightened talk in the market about turbulence at the relative newcomer to the local investment banking scene, with some senior staff putting out feelers for alternative employment. Some claim that, in one instance, an entire team has been looking for a new home.

Sources also told DataRoom rival investment banks were seeing a disproportionate amount of resumes from Jarden staff in recent weeks. It seems as though some employees want to ensure they have a fallback plan, should it be required.

Among most cited destinations? Nomura – which inked a strategic partnership with Jarden in May 2021.

On Sunday, however, Jarden’s head of investment banking in Australia, Aidan Allen, described ”any suggestion of disharmony” as “A-grade garbage”.

The intense focus on Jarden comes amid tension between the New Zealand head office and the Australian offshoot, which started over bonus payments earlier this year with a staff backlash after those at the top suggested senior people take large chunks of stock instead of cash to align their commitment with that of the business.

A standoff ensued before a backing down of sorts by HQ.

Ex-UBS banker Robbie Vanderzeil was hired in 2020 to spearhead the NZ firm’s local operation as Australian chief. In a recent reorganisation he was also named co-head of the investment bank spanning Australia and NZ, alongside Jarden’s group chief executive James Lee, who holds both roles.

The firm has also been dealing with an alleged cultural issue in its Sydney office.

The Australian revealed earlier this month that Jarden was probing complaints of poor workplace behaviour and conduct in its equities and research division. One of those being investigated was back writing research last week – during profit season – but the probe is believed to be ongoing. An external consultant has been hired to assess the allegations and the firm’s broader culture.

Still, Jarden has been on a number of large deals including the demerger of Endeavour Group from supermarket giant Woolworths and advising Atlassian billionaire Mike Cannon-Brookes’ Grok Ventures as it attempted to acquire AGL Energy alongside Brookfield. It also advised on the ASX listing of Peter Warren Automotive and assisted IFM Investors in its pursuit of Atlas Arteria.

Jarden is one of three newcomers to the local investment banking sector over the past four years. The others are the Brian Benari-led Barrenjoey and Jefferies, helmed by ex-Credit Suisse deal-maker Michael Stock.

Barrenjoey has had a busy period on the merger and acquisition front but still opted not to pay bonuses to some senior staff this month, as it focuses on growing its operations. The bank has seen the recent exit of several early figures including chief technology officer David Williams and head of equity financing James Jennings.

Real estate bankers Edmund Zhang and Sai Naicker also quit earlier this month.

Jefferies entered Australia by poaching about 30 employees from CLSA, many of which were raided in one hit in 2019.

The newcomers are being closely watched by the incumbents. A spate of firms have retreated from the Australian equities or institutional share trading business given the challenges around delivering sustainable profits. Deutsche Bank’s exit from institutional equities in Australia was part of a global edict in 2019, and followed Nomura’s retreat in 2013.

Malaysia’s CIMB and Commonwealth Bank have also pulled the plug on local equity operations in the past decade.