Barclay pours $75m into Barrenjoey Capital

Company News

by Lauren Evans

Barclay invested another $75 million into investment bank Barrenjoey Capital, which is backed by Magellan (ASX:MFG).

The increased investment by Barclay’s sees Magellan’s stake in Barrenjoey reduce to 36.4 per cent from 40 per cent. It brings Barclays’ holdings up to 18.2 per cent from 9.9 per cent.

In a statement, Barrenjoey said the increased capital will support growth in Barrenjoey’s markets business, including the go-live of fixed income derivative and equity financing in the next half.

In September 2020, Barclays invested $45 million in Barrenjoey for a 9.9 per shareholding and 4.9 per cent voting interest. Magellan gave the group $156 million, of which $90 million was in cash and the remaining shares for a 40 per cent shareholding. It also provides a $50 million evergreen working facility.

In a statement, Magellan said it is committed to the long-term success of Barrenjoey.

“Our strategic partnership with Barclays has been instrumental to our early success, leveraging their global investment banking and securities franchises and balance sheet for the benefit of our clients,” said Barrenjoey’s chief executive officer Brian Benari.

Shares in Magellan Financial (ASX:MFG) are trading 2 per cent higher at $14.84. 

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