Barclays increases investment in Barrenjoey

Barclays has announced a strengthening of its strategic partnership with investment banking group Barrenjoey Capital Partners through a new $75 million investment.

The firm said that the investment, which will increase its shareholding from 9.9 per cent to 18.2 per cent, would provide additional regulatory capital to support the growth of Barrenjoey’s markets business.

This includes the establishment of Barrenjoey’s fixed income derivatives and equity financing platforms.

“We are delighted to have the opportunity to increase our shareholding with Barrenjoey,” commented Barclays Bank global head of corporate and investment banking, Paul Compton.

“Since our foundation investment in September 2020, Barrenjoey management has delivered on their plans and we have a strong working relationship across our respective platforms. Providing global solutions and products to the Australian client base is at the core of our strategic partnership and this investment will only strengthen it further.”

Barclays originally invested $45 million in Barrenjoey for a 9.99 per cent economic interest and a 4.99 per cent voting interest in the firm in September 2020.

Additionally, Barclays also entered into a cooperation agreement with Barrenjoey that covered global product distribution, research, cross border advisory and debt capital markets while also making available significant balance sheet capacity for Barrenjoey to support its clients.

“Our strategic partnership with Barclays has been instrumental to our early success, leveraging their global investment banking and securities franchises and balance sheet,” said Barrenjoey CEO Brian Benari.

“Importantly, given the rapid growth of our markets business and the launch of our fixed income derivative and equity financing businesses, Barclays’ investment further reinforces our joint commitment to support our Australian and global client base.”

Magellan Financial group, which previously had 40 per cent ownership of Barrenjoey, confirmed that its stake had been reduced to 36.4 per cent in reflection of the new investment.

“As a foundation investor and major shareholder, Magellan is committed to the long-term success of Barrenjoey,” the firm said in a statement to the ASX.

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.