A Christchurch investment bank has signed a deal with a London-based wealth management business to offer New Zealanders more opportunities to access investment products in Europe and the US - including hedge funds.
Ocean Partners, set up last October by two former Ernst & Young partners, and hasthe backing of former reserve bank Governor Don Brash, has set up the joint venture with Credo Capital - a small private client business which manages about £850 million.
Ocean Partners founder and senior partner Paul Park said the relationship would provide access to a suite of products and services in Europe and the US that were normally only available to wealthy international investors.
The products are likely to include multi-strategy hedge funds and commercial property funds.
"We anticipate that a lot of money will end up with hedge funds."
Hedge funds are private investment funds that put money into risky and complex investments.
Park said New Zealand's strong dollar made foreign investing an attractive option.
He said the business would target long-term investment opportunities with strong sterling or dollar returns and were not intending to be involved in trading.
Park said the partnership would also allow it to provide access to services such as asset management, stockbroking, commercial property, multi-family office and trust and fiduciary services.
The multi-family office service meant that high net-worth individuals could outsource the management of all their finances and Ocean would liaise with the family's lawyers and accountants.
Credo Capital director Stephen Davis said he was confident the arrangement would be mutually beneficial to both parties and would grow into a substantial venture.
Credo last year entered into a joint venture with the National Australia Bank to purchase and manage European-based commercial property.
