Prime Highlights

• Australian private equity investor Mercury Capital will purchase a 25–30% minority interest in Forsyth Barr.
• The transaction needs to be completed by August 2025, subject to shareholder and regulatory approval.

Key Facts

• Mercury Capital advises over A$2 billion of growth capital in Australia and New Zealand.
• Forsyth Barr has over 600 staff, 25 offices, and NZ$32 billion of client money under advice.

Key Background

New Zealand’s premier investment and wealth management company Forsyth Barr has entered into a proposed strategic investment by Australian private equity competitor Mercury Capital. Mercury is to acquire a 25–30% minority shareholding in Forsyth Barr from staff shareholders for an undisclosed amount.

The transaction will receive shareholder and regulatory approval and close in August 2025. The two companies stated that there will be no public comment beyond this until the approvals are complete.

Founded in Dunedin over 90 years ago, Forsyth Barr is still largely employee-owned with over 300 shareholder staff. The company has over 600 professionals, has 25 offices throughout the nation across New Zealand, and advises on NZ$32 billion of client funds. Its business ranges from investment advice right through to portfolio management, sharebroking, research, investment banking, cash management, and KiwiSaver schemes.

Mercury Capital is an Australia growth capital private equity company headquartered in Australia and New Zealand. Since 2010 when it was founded, the company has had more than A$2 billion of funds under management and has strong New Zealand ties, with the majority of its employees originally having been born in New Zealand. Such cumulative local knowledge and heritage are defining characteristics to this setup.

Forsyth Barr Chairman David Kirk called Mercury’s planned investment a overwhelming vote of confidence in the firm’s market standing and future strategy. Managing Director Neil Pavour-Smith added the partnership would bring expertise and capital to Forsyth Barr, enabling it to grow while continuing to concentrate on its core activity of providing trusted, tailored financial advice in a more complicated investment environment.

The deal is anticipated to be a source of liquidity for employee shareholders as well as fuel Forsyth Barr’s expansion by strategic collaboration with Mercury Capital’s investment team of experienced professionals.