Barrenjoey Capital Partners

Last updated

Barrenjoey Capital Partners
TypePrivate company
Industry Financial services
FoundedSeptember 21, 2020;3 years ago (2020-09-21)
Headquarters
Quay Quarter Tower, Sydney
Key people
 David Gonski (Non-Executive chairman)
Ken MacKenzie (Strategic Advisor)
Brian Benari (CEO)
Products Investment banking
Securities brokerage
Securities research
OwnerBarrenjoey employees (45.4%)
Magellan Financial Group (36.4%)
Barclays (18.2%)
Number of employees
350 (2023)
Website www.barrenjoey.com

Barrenjoey Capital Partners (Barrenjoey) is an Australian investment banking firm that is headquartered in Sydney with additional offices in Melbourne and Perth.

Contents

History

In May 2020, former UBS Australia chairman Guy Fowler and UBS Australia Head Matthew Grounds were in the process of launching their own firm with the backing of Magellan Financial Group and Barclays and had already received signed contacts from 50 to 60 people ready to join the new firm. However the firm did not launch as planned as the two felt they were not ready, the structure needed to be changed and they lacked someone to run it for them. Eventually hired Brian Benari who was previously the CEO of financial services group, Challenger. [1] [2] [3] [4]

On 21 September 2020, the new firm was officially launched as Barrenjoey (meaning young Kangaroo) with 60 employees. Magellan owned a 40% stake in the firm while Barclays owned a 9.99% stake. Barrenjoey and Barclays would work on deals together where Barrenjoey would act in an advisory capacity to the parties while Barclays would provide the financing of the deal. [1] [4] [5] [6] [7]

During its start and early period, Barrenjoey poached many employees from UBS to which they were called "Raids". [6] [8]

In December 2020, Barrenjoey did its first corporate finance deal by advising the merger between Aussie and Lendi. Its first equities trade was buying shares in Qantas. The firm grew at a very fast pace and became involved in multiple high-profile deals. [1] [9]

In February 2021, businessman David Gonski joined Barrenjoey as a Non-executive chairman. [10] In April 2021, former government minister Kelly O'Dwyer was added to the board of directors as the firm sought to raise female representation. [11]

By mid 2021, BHP Chairman, Ken MacKenzie joined the firm as a Strategic Advisor. MacKenzie supported Jes Staley of Barclays to back Barrenjoey which would help expand Barclays' presence in Asia. Despite his link with Barrenjoey being considered a conflict of interest, BHP hired Barrenjoey to advise on its acquisition of OZ Minerals. [1] [4] [5] [12] [13]

In May 2022, Barclays increased its stake in Barrenjoey to 18.2%. [6] [7]

On 9 February 2023, Governor of the Reserve Bank of Australia, Philip Lowe had a closed door meeting with Barrenjoey which was leaked to the media. The move attracted criticism and Lowe later stated he would avoid attending events at the firm "for quite some time". [14]

In June 2023, Barrenjoey moved its headquarters to the Quay Quarter Tower. In the same period the firm was expanding its new departments which included fixed income, private investments and prime brokerage as its corporate finance advisory business slowed due to market conditions. [15]

According to the Australian Financial Review , as of October 2023 Barrenjoey has yet to have made a profit after tax and establishment costs despite its high ranking on the league tables. It has paid no dividends out yet and has asked its staff to be patient. Insiders have questioned if the firm can continue to operate in the long run while having significant costs and paying out high staff salaries. [16]

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References

  1. 1 2 3 4 "How to build an investment bank after a false start". Australian Financial Review. 13 May 2022. Retrieved 13 July 2023.
  2. ↑ "Former UBS banker to the stars struggles to achieve lift-off". Australian Financial Review. 22 May 2020. Retrieved 13 July 2023.
  3. ↑ Wright, Chris (13 October 2020). "Australia: Barrenjoey launch spells further bad news for UBS". Euromoney. Retrieved 13 July 2023.
  4. 1 2 3 Collett, John (21 September 2020). "Top deal makers to lead Magellan and Barclays investment bank startup". The Sydney Morning Herald. Retrieved 13 July 2023.
  5. 1 2 "Barrenjoey angling to set capital markets alight". Australian Financial Review. 21 September 2020. Retrieved 13 July 2023.
  6. 1 2 3 Fildes, Nic (18 May 2022). "Barclays doubles stake in Australian investment bank Barrenjoey". www.ft.com. Retrieved 13 July 2023.
  7. 1 2 Yeates, Clancy (18 May 2022). "Barrenjoey's value hits $750m as Barclays ups stake". The Sydney Morning Herald. Retrieved 13 July 2023.
  8. ↑ Knight, Elizabeth (15 March 2021). "'We anticipated the raids': How Barrenjoey's poaching day unfolded for UBS". The Sydney Morning Herald. Retrieved 13 July 2023.
  9. ↑ "Australia upends the M&A status quo". Australian Financial Review. 4 July 2022. Retrieved 13 July 2023.
  10. ↑ "David Gonski takes Chifley Associates crew to Barrenjoey". Australian Financial Review. 10 February 2021. Retrieved 13 July 2023.
  11. ↑ Yeates, Clancy (12 April 2021). "Barrenjoey looks to lift women on board after O'Dwyer appointment". The Sydney Morning Herald. Retrieved 13 July 2023.
  12. ↑ "Why Barclays backed Barrenjoey". Australian Financial Review. 21 September 2020. Retrieved 13 July 2023.
  13. ↑ "BHP says management wanted Barrenjoey despite chairman link". Australian Financial Review. 8 August 2022. Retrieved 13 July 2023.
  14. ↑ Argana, Carmeli (16 February 2023). "RBA Scraps Future Barrenjoey Meetings After Trust Destroyed". www.bloomberg.com. Retrieved 13 July 2023.
  15. ↑ "Barrenjoey settles into 'Vertical Village'". Australian Financial Review. 7 July 2023. Retrieved 13 July 2023.
  16. ↑ "Inside the country's most talked-about investment bank". Australian Financial Review. 30 October 2023. Retrieved 5 November 2023.
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