BNZ parent bank in Goldman Sachs tie up

Goldman Sachs JBWere and Bank of New Zealand's parent have tied up in a private wealth management business targeting the rich to be called JBWere.

National Australia Bank, NAB, the Australian parent of Bank of New Zealand, and Goldman Sachs JBWere today unveiled a strategic alliance in private wealth management that spans both Australia and New Zealand.

NAB has agreed to acquire 80.1 per cent of Goldman Sachs JBWere's private wealth management business in Australia and New Zealand, which will be branded JBWere, with Goldman Sachs JBWere retaining the remaining 19.9 per cent.

In New Zealand, this means the private wealth management business headed by John Cobb will have a relationship with Bank of New Zealand and its parent.

Goldman Sachs JBWere will distribute certain products to the new JBWere on an exclusive or preferred basis.

JBWere advisers will retain full access to the existing range of services, investment research and products currently available through Goldman Sachs JBWere, as well as accessing additional services from NAB and its unit MLC.

Cobb was not immediately available but the New Zealand private wealth management business is believed to employ about 80 people and is expected to expand under this new ownership arrangement.

The rest of the Goldman Sachs JBWere in New Zealand, effectively the investment banking business, continues to operate under the leadership of Andrew Barclay.

The wealth management business targets so-called high net worth and ultra-high net worth individuals.

NAB will outlay A$99 ($126) million for JBWere, with additional performance related consideration payable dependent on revenues generated by the business over a period of three years. The acquisition is subject to regulatory approvals and is expected to be completed by the end of this year.

- NZPA