Boutique merchant bank Murray & Co has purchased a Queenstown-based private wealth management business, giving it 300 extra clients and a new branch office in the South Island.
Christchurch-based Murray & Co is buying Rose Capital Management Ltd, set up by Matthew Rose in 2001, and will take on Rose in its Christchurch office as part of the deal.
The acquisition price or details have not been disclosed.
The purchase follows last year's purchase of Duncan Cotterill Investment Advisors, which brought an extra 150 clients to Murray & Co.
Murray & Co managing director Justin Murray said Rose Capital would be a good fit to the company's wealth management business, which had seven employees.
Matthew Rose would be an executive director of the wealth management team and move to Christchurch.
Murray & Co also has corporate advisory, private capital and property advisory services.
Rose Capital catered to the investment and portfolio management requirements of a group of charitable trusts, wealthy families and individuals throughout New Zealand, but particularly in the lakes region around Queenstown.
"He (Rose) will spend a reasonable amount of time around Queenstown meeting with his local clients and together with us growing our presence in that market."
The purchase was a step towards the firm's objective of becoming the South Island's leading wealth management firm, Murray said.
He did not want to disclose the total number of wealth management clients or the size of the wealth pool under management.
Two charity entity clients were Canterbury Museum and the Christchurch Art Gallery Trust.
Other typical clients included wealthy families and members from those families, with Murray & Co guiding these clients on an individual basis, investing typically in cash, stock, bonds and property nationally and internationally.
Murray said his firm now had a Queenstown office and the Christchurch office (to be relocated to Victoria St later this year), as well as access to the Auckland offices of First NZ Capital, which has a 24 per cent stake in Murray & Co.
Rose said Murray & Co was a natural fit for his clients.
"My decision to join Murray & Co reflects the mutual respect and shared values between Rose Capital and Murray & Co based on a long-standing professional relationship."
Prior to establishing Rose Capital, Rose was managing principal of the New Zealand branch of United States investment bank, Merrill Lynch.
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