NZX buying asset firm Quaystreet

Stock exchange operator NZX is to buy the management rights of Quaystreet Asset Management from Craigs Investment Partners in a deal worth up to $50 million.

NZX will pay $31.25m upfront for the asset manager which has $1.6 billion in funds under management including $481m invested in its Kiwisaver scheme. That will be made up of $22.5m in cash and the issuance of $8.75m in NZX shares.

A further $18.75m will potentially be payable to Craigs in an earn-out clause based on how much further fund inflows Craigs can direct into the asset manager over the next three years through its advisory network.

NZX chief executive Mark Peterson said the acquisition provided an attractive opportunity to acquire a high-growth fund, aligned with a private wealth network which would help it drive further scale in its Smartshares business.

Simon Tong, chief executive of Craigs Investment Partners, said the deal was strategically important for Craigs and would position it for growth. “We are working closely with Smartshares to ensure the transition is seamless.”