Silvana Schenone, Managing Director, Co‑Head of Investment Banking NZ at Jarden
How would you describe 2022 for your business?
2022 was a positive year for us at Jarden, with significant growth in NZ and Australia. In the past 12 months, our team has advised on a number of high-profile transactions, with values totalling more than $100 billion.
Our clients and many investors are increasingly seeing NZ and Australian markets as one, and our transtasman Investment Bank team has continued to strengthen its footprint, with more than 300 employees across NZ and Australia.
In a market challenged by inflation, increasing interest rates and volatility, we have seen the benefits of a truly integrated transtasman approach, where we can offer our clients the best advice in an agile and dynamic way.
We have seen opportunistic behaviours in the listed space, with activism and more aggressive bidding tactics taking place in Australia, and we expect this trend to follow in NZ. Listed companies should be ready to react promptly to such an approach.
We see global funds continue to show keen interest in NZ assets, especially in the infrastructure space, given their often long-term, stable cashflow profile. Activity in the renewables and energy transition sectors also remains strong. There are large pools of private capital in the economy that need to be deployed. We expect there will be many opportunities for the nimble.
How is your business planning to tackle 2023?
We expect strategic reviews to continue and a number of corporate carve-outs resulting from them.
The relentless focus on growth that has occupied most corporates’ strategy for a very long time may need to be replaced with a “focus on core” approach.
Should tougher economic conditions play out, then consolidation may be on the cards as businesses face additional margin pressures. Having said that, corporate balance sheets are generally in good shape and as economic activity slows down, some may look for synergistic acquisitions.
What will be the major challenges and/or opportunities for your industry?
It will probably be a slower start to the year for ECM (equity capital markets) activity, but we still expect many businesses will need to raise capital. We will need to support clients in a rapidly evolving environment.
The Reserve Bank is forecasting a recession this year and many people who have not lived or led through these type of conditions will need to be making significant decisions. Our firm has a significant amount of combined experience to help businesses navigate through these challenging times.
How do you think the Government has handled the economy?
The last couple of years have been very tough and challenging for everyone. Most people would agree that the Government has been slow to see the re-emergence of inflation, and the Reserve Bank was delayed in taking the required steps in terms of monetary policy.
In terms of fiscal policy, the Government has still plenty to do. My view is that the spending should focus on building capacity. Some decisions, or the lack of action, are having negative unintended consequences.
The current and expected economic and social environments require strong and focused leadership.
How do you think the National Party has performed in opposition?
There is a sense that they have been keeping their head down, and maintaining a low profile, for too long in difficult times.
As we enter an election year, I think we all want to know in practical and unequivocal terms what are they going to do to address New Zealand’s substantial challenges – like flat productivity, growing crime rates, inflation and affordability.
Ultimately, people will choose based on what the different parties have done or not done and not just their statements.
What are your predictions for 2023?
From a broader standpoint, inflation and interest rates are obviously key factors impacting the economy and it is always difficult to make a clear prediction on what the exact impact of those could be.
I do think that the full impact of the RBNZ’s interest rate rises will only start taking effect through 2023 and possibly even 2024 so the uncertain economic environment may persist for a while.
When we look at what this means for businesses we expect challenges but also opportunities ahead. In a bear market, I think there are going to be more opportunities than many pundits are expecting, but those will be very different to what they have been over the last few years and adaptability will be key.
In speaking with our broader team at Jarden, some see signs that inflation pressures may ease sooner than that – with global supply chain challenges easing, commodity prices falling and the cooling housing market in New Zealand, although a slowdown in wage growth might take some time. Only time will tell!
At a different level, I think that we will finally adapt to Covid. Devastating though it has been for those who have lost a loved one, or who are suffering enduring symptoms, we are going to accept that it is part of our world, in a similar way to how our ancestors had to adapt to influenza or other epidemics.
The world has opened up again, with the benefits and perils of a globalised economy, including the contagion effect on many market dynamics, but also the challenges of nationalism and trade protectionism back on the rise.
What was the most interesting story of 2022?
NZ hosting and winning the Rugby World Cup. The performance of the Black Ferns was inspiring, and the vibe in our country with sold-out Eden Park games was amazing.
It brought positivity and pride to NZ after some tough years with Covid, lockdowns and a gloomy economic outlook. At a different scale, I am also immensely proud of the work we do in OnBeingBold (an initiative of which I’m one of the founding members and directors, aimed at inspiring and encouraging women in business to be bold and fulfil their dreams).
After not being able to hold our landmark annual conference for a couple of years due to Covid, we had our biggest and best event ever with 1100 women, and a few men, and some really incredible speakers at the Spark Arena in November.
What’s the worst mistake you’ve made in business?
It’s hard to think of a “worst one”. There are many things I might do differently with the benefit of hindsight, but I am innately a strong optimist, and even the things that are challenging at the time you can learn from.
Having said that, I learnt a big lesson when I was working in New York and didn’t want to pursue an exciting opportunity because I thought I didn’t have enough experience for the job.
So I didn’t follow through and dropped off the process. The person who got the job was less experienced/less prepared than me, but ended up doing a fabulous job. His view was that he could take the challenge as he had enough enthusiasm and the ability to learn. Two things I also had, but I didn’t feel brave enough to embark on the adventure.
The lesson is as the famous saying goes: “Do not be concerned that you might set a target too high and fail. Be concerned that you will set it too low and succeed”.
What would you rate as your greatest success in business?
The boldest thing I have done so far is to change my career this year, from leading the corporate team at MinterEllisonRuddWatts to becoming managing director and co-head of investment banking at Jarden.
It’s a bold move that will require a big effort and focus, but it is hugely exciting too as it gives me a fantastic opportunity to contribute to a successful organisation and more broadly to reshape the financial services environment in NZ.
I love the modern approach we are offering to our clients at Jarden, of a broad set of skills working together as a team to achieve the best possible outcomes. I am committed to continue supporting our clients as their trusted adviser. My track record as a successful team leader and dealmaker is very valuable in my new role.
And while it is an honour to have been offered this opportunity, as the only woman leading a major investment bank in NZ, it is also a huge responsibility to be a role model to others in the industry who are trying to find their way ahead.
Where and how are you holidaying this summer?
Staying with friends in central Otago, one of the most beautiful places in the world.
Silvana Schenone is a managing director and co-head of investment banking NZ at Jarden. The information and commentary are provided for general information purposes only. It reflects views and research available at the time using external sources, systems and other data and information we believe to be accurate, complete and reliable at the time of preparation. We make no representation or warranty as to the accuracy, correctness and completeness of that information, and will not be liable or responsible for any error or omission. It is not to be relied upon as a basis for making any investment decision. Please seek specific investment advice before making any investment decision or taking any action. Jarden Securities Limited is an NZX Firm. A financial advice provider disclosure statement is available free of charge at https://www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement
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