A joint venture between a company owned by rich-lister Ben Gough and UK global asset manager LJ Partnership has snapped up a stake in a second fund management firm.

Alvarium (NZ) Wealth Management has bought 51 per cent of responsible investment fund manager Pathfinder Asset Management for an undisclosed price.

Alvarium is 68.5 per cent owned by Alvarium Investments - a company 50-50 owned by Gough's Tailorspace and LJ Partnership which manages $25 billion in assets globally - and 30 per cent owned by interests associated with NZAM.

Last year Alvarium bought NZAM - an Auckland boutique fund manager which uses an absolute return strategy.

Advertisement

John Berry, chief executive of Pathfinder, said it had been approached by investors in the past but not one where it had opened up as many opportunities.

"These guys are the perfect partners," he said.

Pathfinder has a handful of overseas high net worth clients but Berry said it hoped the connection with LJ Partnership would allow it to tap into a wider network of investors.

Most of the $150 million it currently managers is from local investors including Ngai Tahu.

Berry said it had also managed money for the Gough family for a number of years.

The Gough family was estimated to be worth $400 million on last year's NBR Rich List and has spread its investments far and wide since its early days when it invested in the Caterpillar brand.

Pathfinder launched its first fund in 2010 and Berry said interest in ethical investment had surged worldwide since then.

Last year it tweaked one of its funds to make it vegan-friendly after demand from investors who were against companies involved in animal testing.

Advertisement

The firm has already found synergies moving into the Auckland central offices of NZAM this week from its former Takapuna office.