By Nick Hedley
New Zealand-based investment manager Fisher Funds,
which is 34% owned by U.S. private equity firm TA Associates, has agreed
to acquire Kiwi Wealth for NZ$310 million (US$197 million), the firms
said in a statement.
Fisher Funds CEO Bruce McLachlan said the acquisition
is part of the company’s long-term growth plans in KiwiSaver – the nation’s
retirement savings program – and active fund management activities.
Kiwi Wealth, which manages NZ$9.4 billion in assets as of
February 28, is currently owned by Kiwi Group Holdings, which, in turn, is
majority owned by state-owned postal service New Zealand Post.
As part of the deal, Fisher Funds will enter a strategic
partnership with Kiwi Group Holdings subsidiary Kiwibank, which will refer its
KiwiSaver customers to Fisher Funds.
Kiwibank chief executive Steve Jurkovich said: “This
partnership delivers on our growth strategy and will enable Kiwibank to
continue to offer KiwiSaver and other wealth products to our customers.”
Kiwi Group Holdings cChair Dame Paula Rebstock said the
transaction will boost Kiwi Wealth’s growth.
“Kiwi Wealth’s more than 270,000 members will be
gaining access to Fisher Funds’ award-winning advice and active investment
team,” said Rebstock.
The acquisition is conditional on approval by the Overseas
Investment Office, given TA Associates’ partial ownership of Fisher Funds.
Once the deal is completed, Fisher Funds and Kiwi Wealth
will begin to work through a transition period to identify opportunities to
grow the value of the combined businesses, the firms said. Fisher Funds will
seek to retain Kiwi Wealth’s default KiwiSaver status.