The capital injection values Barrenjoey,which has worked on some major deals in the local market since its 2020 launch,at about $750 million,and gives Barclays a stake of 18.2 per cent in the company.
Barrenjoey chief executive Brian BenariLouie Douvis
Barrenjoey was launched in 2020 in a partnership with Barclays and with backing from beleaguered fund manager Magellan,recruiting a series of high-profile bankers and analysts in an attempt to take on established players such as Macquarie Group,UBS,and other global investment banks.
Barrenjoey chief executive Brian Benari said it was still early days for the company,as he highlighted the benefits of its partnership with Barclays,under which Barclays provides lending and other services to clients being advised by Barrenjoey.
Benari said the company had benefited from strong market conditions,but also stressed the importance of its partnership model,and the staff it had hired.
“That’s what has been the magic of the success of where we’ve got to so far,but it’s only the beginning of a long journey,” Benari said.
Barrenjoey,which has former UBS banker Matthew Grounds as co-executive chairman and David Gonski as non-executive chairman,earlier this year reported it had started making profits,helped by a strong year in mergers and acquisitions.
The company has been involved in high-profile M&A activity including the mammoth $20led by private equity giant KKR,last year’s,and.
Barclays suddenly quit the Australian market in 2016,only to announce it was re-opening an office here two years later,before gaining a licence to take deposits in Australia last year.
Barclays global head of corporate and investment banking,Paul Compton,said Barrenjoey had been delivering on its plans since 2020 and it had a strong working relationship with the company. “Providing global solutions and products to the Australian client base is at the core of our strategic partnership and this investment will only strengthen it further,” he said.
As a result of Barclays’ capital injection,Magellan’s stake in Barrenjoey has fallen from 40 per cent to 36.4 per cent. Amid speculation about how the turmoil at Magellan could affect Barrenjoey,Magellan chairman Hamish McLennan in February dismissed speculation it could sell the stake,saying “we’re not sellers.”
On Wednesday Magellan said:“As a foundation investor and major shareholder,Magellan is committed to the long-term success of Barrenjoey.”
Barrenjoey staff now own 45.4 per cent of the company,while retaining 90.02 per cent of its voting rights.
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