Australian PE firm seeks 30% stake in Forsyth Barr

Sydney-based private equity firm Mercury Capital is proposing to take a stake of up to 30% in local broking, merchant banking and investment management firm Forsyth Barr with its offer subject to a shareholder vote among other conditions.

“This is a highly positive step for the firm, our staff and clients,” said Forbarr chair David Kirk in announcing the planned investment.

“Mercury Capital’s investment reflects confidence in our strategy, market position and future growth,” Kirk said.

Mercury, founded in 2010, has more than $2 billion with funds under management (FUM) and specializes in providing growth capital to businesses in Australia and New Zealand. Its founder, Clark Perkins, and about half its staff are New Zealanders.

Perkins was previously managing director of Goldman Sachs JB Were where he had also been head of merchant banking.

Forbarr has more than 300 staff members who are shareholders – it has more than 600 employees in 25 offices across New Zealand.

It manages or advises on more than $32 billion of clients’ investments – it bought Hobson Wealth in late 2023.

“We are excited that Mercury Capital is seeking to partner with us. We believe their expertise and experience will support the capabilities we have built up as a firm over a long period of time,” said managing director Neil Paviour-Smith.

“Mercury Capital shares our view that trusted personalized advice is more important than ever to help clients navigate a world of accelerating change, disruption and opportunity.”

Paviour-Smith said the offer, for between 25% and 30% of Forbarr, is pro-rata and is expected to complete during August. No purchase price was disclosed.