Forsyth Barr has entered into an agreement with Mercury Capital, a Sydney-based private equity firm, for a proposed investment that would see Mercury Capital acquire a 25–30% shareholding in the firm.
The offer, which is subject to shareholder approval and other conditions, is expected to complete in August.
Mercury Capital is a well-established private equity firm with over $1 billion in funds under management. Founded in 2010, the firm provides growth capital to established businesses across Australia and New Zealand. It has strong ties to New Zealand, with its founder and approximately half of its team being New Zealanders.
David Kirk, Forsyth Barr Chairman, said the proposed investment is a positive step for the firm. “Mercury Capital’s investment reflects confidence in our strategy, market position and future growth,” he said.
Forsyth Barr was founded in Dunedin 90 years ago and is now owned by more than 300 of its staff. The proposed partnership is seen as a natural next step in the company’s ongoing evolution.
Managing Director Neil Paviour-Smith said: “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 over a long period of time.”
He added: “Mercury Capital shares our view that trusted personalised advice is more important than ever to help clients navigate a world of accelerating change, disruption and opportunity.”
Forsyth Barr and Mercury Capital will not be making further comment until the proposed investment has been completed.
