Barclays and Magellan Financial Group have agreed to become foundation investors in new Australian financial services firm Barrenjoey Capital Partners.
With the collaboration, Barclays aims to ramp up its growth in Australia.
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By GlobalDataThe British banking group will invest A$45m ($32.6m) in the new business, which is expected to launch in the middle of next year.
In return, the bank will get a 9.99% economic interest and a 4.99% voting interest in the new firm.
Besides, the lender inked a cooperation agreement with Barrenjoey.
The agreement will include global product distribution, research, cross border advisory and debt capital markets.
The bank will also offer significant balance sheet capacity for the soon-to-be-launched business.
Services to be provided by Barrenjoey
The new firm will offer a range of services in Australia.
These include corporate and strategic advisory, domestic equity and debt capital market underwriting, cash equities, research, prime brokerage and traditional fixed income services.
Barclays Bank president Paul Compton said: “We see Australia as an attractive and important financial services market.
“With Barrenjoey’s ambitions in the domestic market and our focus on cross-border business, we see this as a compelling strategic investment.
“This opportunity enables us to complement our existing presence, leverage our global infrastructure and assets, providing access to Australian opportunities for our global clients while at the same time ensuring a strong financial return on Barclays’ investment in Barrenjoey.”
Barclays moves
This July, Barclays launched a robo advice service called Barclays Plan & Invest.
The service will offer customers access to an investment plan that is customised to their goals.
Barclays recently also secured a private banking licence in South Africa.
In April this year, Rathbones acquired Barclays Wealth Personal Injury and Court of Protection business.