Deutsche Bank and New Zealand-based Craigs Investment Partners (CIP) have entered into a proposal whereby Deutsche New Zealand, a wholly owned subsidiary of Deutsche Bank, would acquire 49.9% interest in Craigs Investment Partners.
The new strategic alliance will see CIP, a provider of private wealth and investment management services, remain a stand-alone business, aligned with Deutsche Bank’s global investment banking platform.
Under the proposed transaction, Deutsche Banks’ New Zealand corporate finance team and CIP equity and debt capital markets teams will work together, combining CIP’s established distribution and New Zealand capital markets with Deutsche Bank’s advisory and global capital markets businesses, to provide clients an enhanced service and product offering.
Deutsche Banks’ global institutional equities platform and CIP’s New Zealand institutional equities platform will work in an integrated fashion, to provide execution to clients in New Zealand and globally.
CIP will place an employee onto the Deutsche Bank’s Sydney institutional equities sales desk to drive cross border flows. Institutional clients of both organisations will have access to Deutsche Bank’s global research and CIP’s institutional equities research team in New Zealand.
CIP’s’ wealth management clients will benefit from the CIP’s research analysts gaining access to the Deutsche Bank global research platform. CIP will look to access a range of products as the parties work together to explore the potential to leverage Deutsche Bank’s global product platform.
However, the existing CIP shareholders will continue to hold 50.1% of the company with six existing directors continuing on the Craigs board, including Neil Craig who will continue as executive chairman, alongside six representatives from Deutsche Bank Australia and New Zealand.
The proposal is intended to be implemented by a scheme of arrangement and is conditional on, amongst other things, Craigs Investment Partner’s shareholder approval and obtaining all necessary regulatory and court approvals.
Frank Aldridge, managing director of Craigs Investment Partners, said: “This is another positive step forward for our business. The opportunity to work closely with Deutsche Bank, one of the leading global banks, will help us offer an even broader range of financial products and services, global research and significant investment opportunities to clients.”
Brett Shepherd, CEO of Deutsche Bank New Zealand, said: “This proposal is an exciting opportunity for both parties and their respective clients. Deutsche Bank will gain access to a significant retail and wholesale equities presence in New Zealand, and position both Craigs and Deutsche to capitalise on the growth in the New Zealand capital markets over the next decade.”