The bank will invest AUD45m (around £25m) in Barrenjoey that is expected to be launched in the middle of 2021
UK-based investment bank Barclays has agreed to be a foundation investor in Barrenjoey Capital Partners, a new Australia-based full-service financial services firm.
Under the terms of the agreement, Barclays will invest AUD45m (around £25m) in Barrenjoey, in exchange for 9.99% economic interest and a 4.99% voting interest.
Expected to launch in the middle of 2021, Barrenjoey would provide corporate and strategic advisory, domestic equity and debt capital market underwriting, cash equities, research, prime brokerage, along with traditional fixed income services in Australia.
Barclays Bank president Paul Compton said: “We see Australia as an attractive and important financial services market. With Barrenjoey’s ambitions in the domestic market and our focus on cross-border business, we see this as a compelling strategic investment.
“This opportunity enables us to complement our existing presence, leverage our global infrastructure and assets, providing access to Australian opportunities for our global clients while at the same time ensuring a strong financial return on Barclays’ investment in Barrenjoey.
Magellan Financial Group also becomes a foundation investor in Barrenjoey
The financial services firm has also signed a cooperation agreement with Barrenjoey encompassing global product distribution, research, cross border advisory and debt capital markets.
The agreement will also include provision of balance sheet capacity for Barrenjoey to support its clients.
The cooperation agreement is expected to strengthen Barclays’ footprint in Australia, and simultaneously provide Barclays with an opportunity to accelerate its growth strategy in the country.
Magellan Financial Group also announced that it has become a foundation investor in Barrenjoey.
Compton added: “We are pleased to be a foundation investor in Barrenjoey and also to have made available significant balance sheet capacity so that Barrenjoey can support its clients to meet their aspirations.”
In August, Barclays introduced new non-deliverable forwards (NDF) algorithms on its electronic trading platform BARX’s Gator algorithm suite for foreign exchange (FX) trading.