Barrenjoey’s Magellan merger is about talent — and private markets expansion
The upstart investment bank and asset manager both want to retain their top talent and both want to expand into private markets. A merger may help.
Barrenjoey chief executive Brian Benari says a proposed merger with Magellan Financial Group will help the upstart investment bank retain its top dealmakers and attract other talent as it looks to deepen its push into private markets.
ASX-listed Magellan told the market on Monday it had struck an agreement to merge with Barrenjoey by issuing new shares to the investment bank’s staff and shareholders.
The deal values Barrenjoey, which was founded by star former UBS dealmakers Matthew Grounds and Guy Fowler in 2020, at $1.6 billion. Prior to the merger, Magellan held 36% of the company.
Benari, who is set to lead the merged entity, told Capital Brief the merged entity would be in a stronger position to retain talent, in part due to career opportunities. The company could also now pay its staff bonuses in listed shares, which are much easier to sell and value than equity in a private company.
