TA to buy stake in New Zealand's Fisher Funds

The trust, a philanthropic organization that exists for the benefit of the Taranaki region on New Zealand’s North Island, acquired a 26% stake in Fisher Funds in 2013 – paying NZ$32.8 million ($24 million) – and increased its position to 49% in 2015. On making the initial investment, the trust received an option to acquire the balance of the company in 2017. It has chosen to exercise this option.

In parallel with the buyout, the trust has agreed to sell 24.99% of Fisher Funds to TA. The intention is that the private equity firm will increase its holding to 34% on receipt of regulatory approvals. Fisher Funds will continue to be led by CEO Bruce McLachlan, while founder Carmel Fisher – who retired from her executive role in May – will remain on the board.

Founded in 1998, Fisher Funds has accumulated more than 270,000 clients and NZ$7 billion in assets under management. It is the country’s fifth-largest provider under the KiwiSaver program, a voluntary long-term savings scheme introduced nationwide in 2007.

"Fisher Funds is an iconic New Zealand business that has built a reputation for excellence in investment management and client service. Our intention is to continue to build on the great business that exists today, adhering to its values and mission of making investing understandable, enjoyable and profitable for New Zealanders,” said Hayden Wano, chairman of TSG Group, in a statement.

TA is a growth-stage private equity firm that operates on a global basis. It has raised more than $25 billion since its inception in 1968 and deployed $18 billion across over 480 investments. The GP targets companies valued at $100 million to $3 billion and writes equity checks of $50-500 million, although the range is lower in Asia.

Previous financial services investments in the region include supporting a management buyout of Goldman Sachs Asset Management’s (GSAM) Australian equities and fixed income business in 2016. The independent business is known as Yarra Capital Management.

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• Topics
• Australasia
• Expansion
• Financials
• New Zealand
• Growth capital
• TA Associates