NAB has completed the restructure of its New Zealand wealth management business and expects to make a pre-tax gain of around A$400 million from the deal.

In a transaction that was first announced in December. the bank has sold its NZ wealth businesses, JB Were New Zealand and BNZ Investment Services, to a new entity FirstCape Ltd.

Jarden Wealth and Harbour Asset Management, an NZ advisory and asset management company, has also been sold to FirstCape.

NAB will hold 45 per cent of FirstCape and Jarden will hold 20 per cent. Private equity firm Pacific Equity Partners has acquired a 35 per cent holding in FirstCape and will make cash payments to NAB and Jarden. 

NAB said FirstCape would be one of New Zealand’s leading wealth management businesses, with 113 advisers, NZ$29 billion of funds under advice and administration and NZ$15 billion of funds under management.

It said the deal would provide the opportunity to grow the business by expanding product offerings and combing Jarden’s asset management capability with BNZ’s distribution network.

FirstCape chief executive will be Malcolm Jackson, who is CEO of Jarden’s wealth and asset management businesses.

NAB did not say whether it plans to hold its stake in the new business long term. The gain will be reported in the results for half year ending September 30.