Wealthy families unite in $3b deal
TWO of the nation’s richest families are proposing to merge their family office operations to create a $3 billion wealth management and inter-generational advisory powerhouse.
The Myer and Baillieu families will join forces in one of the biggest ever deals in the family office sector.
The Myer family’s holding company, Myer Family Investments, and the Baillieu family’s Mutual Trust have announced a conditional heads of agreement to combine Mutual Trust and the Myer family office known as MFCo.
Myer Family Investments will emerge with 35 per cent of the enlarged Mutual Trust and will become its biggest single shareholder.
It will appoint three directors to an expanded board of nine for the merged entity.
Former UBS Australia chairman Gordon Dickinson will carry on as chairman of the company, which will continue to trade under the Mutual Trust name.
“Mutual Trust and MFCo both have focused on helping families with the challenges of managing wealth and their financial affairs across generations,’’ Mr Dickinson said.
“As a combined entity, client experience will be enhanced and the financial strength of the combined business will benefit all stakeholders.
Myer Family Investments chief John Russell said: “The combination of these businesses provides real benefits for the clients of both organisations and will create a stronger and deeper platform.”
Sidney Myer, chairman of Myer Family Investments, said both organisations had “a strong heritage, are culturally aligned and together they offer the prospect of a unique and compelling offer to clients”.
Mutual Trust manages $1.5 billion in liquid assets focusing on equity and fixed income and its chief executive is Tim Hammon, a former Coles Myer executive and long-serving partner at law firm Mallesons.
MFCo, the nation’s most recognisable multi-family office, has funds under admin- istration of about $1.6 billion.
Mr Hammon has told the Mutual Trust board he will be stepping down after 10 years in the role and a new chief executive of the combined group will be appointed once it becomes unconditional.
He will remain chief executive until that time and will continue as a consultant to the merged entity.
“This deal will position us to be the leading multi-family office in the nation,’’ Mr Hammon said.
“We have this opportunity to really build something that is going to be in a niche. This is not a wealth management business alone.
“Where it differs is this wholistic approach to client services. A one-stop shop.’’