NAB shows wealth intent with JV
(29 July 2009 – Australia) NAB has shown its intent to focus on private wealth management to high net wealth individuals with a joint venture agreement with Goldman Sachs JBWere.
National Australia Bank (NAB) and Goldman Sachs JBWere (GSJBW) today announced an agreement for NAB to acquire 80.1 percent of Goldman Sachs JBWere’s private wealth management business in Australia and New Zealand.
The JV will be branded JBWere, with Goldman Sachs JBWere retaining the remaining 19.9 percent.
NAB will outlay A$99 million for JBWere, with additional performance related consideration payable dependent on revenues generated by the business over a period of three years.
In the announcement, NAB indicated that JBWere will remain a centre of specialist expertise, focused on delivering advice driven wealth solutions to high net worth clients. The brand will also become a portfolio business of NAB’s wealth division, MLC & NAB Wealth.
The alliance also incorporates a strategic distribution relationship which enables GSJBW to distribute certain products to JBWere on an exclusive or preferred basis.
Revealing the strategy behind the move, NAB chief executive, Cameron Clyne, said that JBWere’s pre-eminent reputation for providing wealth management services to high net worth individuals and National Australia Bank’s strong footprint in business and private banking is a great combination.
JBWere is a leading wealth advisory business with more than 22,000 active client relationships, assets under advice exceeding $38 billion, and funds under management of around $10 billion.
This strategic alliance between NAB and Goldman Sachs JBWere aims to deliver an enhanced outcome for Goldman Sachs JBWere and MLC & NAB Wealth clients through their ability to access an expanded service offering.
The joint venture is subject to regulatory approval and is expected to be completed by the end of 2009.
The JV will be branded JBWere, with Goldman Sachs JBWere retaining the remaining 19.9 percent.
NAB will outlay A$99 million for JBWere, with additional performance related consideration payable dependent on revenues generated by the business over a period of three years.
In the announcement, NAB indicated that JBWere will remain a centre of specialist expertise, focused on delivering advice driven wealth solutions to high net worth clients. The brand will also become a portfolio business of NAB’s wealth division, MLC & NAB Wealth.
The alliance also incorporates a strategic distribution relationship which enables GSJBW to distribute certain products to JBWere on an exclusive or preferred basis.
Revealing the strategy behind the move, NAB chief executive, Cameron Clyne, said that JBWere’s pre-eminent reputation for providing wealth management services to high net worth individuals and National Australia Bank’s strong footprint in business and private banking is a great combination.
JBWere is a leading wealth advisory business with more than 22,000 active client relationships, assets under advice exceeding $38 billion, and funds under management of around $10 billion.
This strategic alliance between NAB and Goldman Sachs JBWere aims to deliver an enhanced outcome for Goldman Sachs JBWere and MLC & NAB Wealth clients through their ability to access an expanded service offering.
The joint venture is subject to regulatory approval and is expected to be completed by the end of 2009.
Subscribe