JANA becomes fully management-owned after Insignia stake buyout

Investment consulting giant JANA will become wholly management-owned after striking an agreement with Insignia Financial to buy its 45 per cent shareholding, which the latter acquired when it bought MLC Wealth.

The buyout will not impact JANA’s existing client services or agreements, the investment consultant confirmed.

JANA CEO Georgina Dudley welcomed the “exciting new chapter” for the business.

“Over the past five years, we have seen the benefits of management ownership and how it has further aligned our focus with clients whilst allowing us to deliver exceptional investment results and significantly grow our funds under advice,” Ms Dudley explained.

“Full management ownership enables us to continue to build on that success and seize even more opportunities for our clients,” she added.

JANA re-acquired a 55 per cent stake in the firm from MLC Wealth in 2017. At the time of the transaction, JANA had 85 staff and $350 billion in investments under advice.

Since then, JANA has expanded to more than 140 staff and more than $1.3 trillion in investments under advice. The investment consultants credited the re-acquisition for its growth.

“This is a significant next step in JANA’s evolution, enhancing both autonomy and alignment, and linking staff directly to the success of the business and our clients,” Ms Dudley said.

“Moving to full equity ownership will continue to improve JANA’s ability to attract, retain and develop its people.”

Commenting on the decoupling, Insignia’s chief asset management officer and JANA board member, Garry Mulcahy, said the partnership “had been productive for both Insignia Financial and JANA”.

“This resetting of the commercial relationship is on strategy and aligned to Insignia Financial’s ongoing focus on simplification,” he added.

Mr Mulcahy and Insignia Financial’s other representative will step down from JANA’s board, and further non-executive directors will be announced through a structured succession in 2023.

Fiona Dunn, chairperson of the JANA board, said the business is excited to have Ms Dudley lead JANA into its next phase of growth.

“The partnership between JANA, MLC and Insignia Financial over the past 20 years has seen significant success and growth. We thank them for all their contribution and commitment,” Ms Dunn concluded.

JANA will continue to provide investment consulting services to Insignia Financial.