US growth capital firm TA Associates is to take a 50% “strategic” stake in New Zealand wealth management firm Craigs Investment Partners.
Financial details of the transaction have not been disclosed.
Under the agreement, existing employee and director shareholders who currently own the business will retain 50%.
TA managing director and head of Asia Pacific Hong Kong-based Ed Sippel said: “Over the past 40 years, Craigs has established itself as one of the largest and most respected wealth management firms in New Zealand, offering a comprehensive range of personalised wealth advice and services to its clients. We deeply respect this history and are honoured to support the firm’s continued growth strategy and commitment to delivering best-in-class client outcomes.”
TA vice president Lily Xu added: “TA has a long history of partnering with world-class wealth managers like Craigs. We are excited to collaborate with the entire Craigs team to expand the firm’s reach, continue enhancing its service offerings, and explore strategic M&A opportunities.”
Craigs chief executive Simon Tong said: “TA is an ideal partner to support Craig’s growth ambitions and ongoing commitment to client outcomes given its significant global experience investing in wealth management and its strong understanding of the regional market.
“Craigs and TA are aligned on a client-first philosophy and the importance of a personalised approach to wealth management. Client outcomes remain our top priority and there will be no change in the people or our approach to providing outstanding service to our clients.”
The agreement is subject to court, Craigs shareholders’ and New Zealand Overseas Investment Office approval. The deal is expected to complete late in the first quarter of 2025.
Craigs is one of New Zealand’s largest investment advisory firms and offers a wide range of services to individual investors and corporate clients. The firm has over 180 qualified investment advisers, employs a total of more than 650 people and operates 19 branches across New Zealand. The firm has around $NZ32 billion in funds under advice.
In 2017, TA took a substantial minority stake in New Zealand fund manager Fisher Funds. The firm is currently believed to be seeking to exit its 33.9% stake.
In early 2021, TA took an undisclosed “significant” stake in Sydney-based exchange traded fund (ETF) manager BetaShares.
Early in 2024, TA is believed to have made an initial bid for the wealth advisory division of Perpetual (ASX: PPT).
Image: TA Associates managing director Ed Sippel.