Jarden’s Australian investment bank logs $13m loss as expenses grow
Jarden’s Australian operations recorded a $13.3 million loss for the 15 months to March 31, as expenses weighed on the investment bank, which has hired hundreds of staff since its inception in 2020.
Operating expenses reached $106.5 million for the period, compared to $81.6 million for the 12 months to the end of December 2021, the bank said in filings with the Australian Securities and Investments Commission.
Jarden Australia’s co-chief executive Sarah Rennie previously said the local investment bank was focused on growing capital. Louise Kennerley
Expenses have piled up for Jarden’s local operations as it expands and pays senior bankers amid tougher conditions for dealmaking. To mitigate a slowdown in mergers and acquisitions and capital markets deals, investment banks have doled out weaker bonuses and cut hundreds of jobs around the world this year.
Australian investment bankers’ fees slumped 50 per cent in the first half of the year, marking their worst six-month year-on-year showing in five years. The absence of IPOs and a 60 per cent fall in fees from completed mergers and acquisitions were the most noticeable factors across investment banking, which was scarred by rising interest rates and stubborn inflation.
Despite its expenses, Jarden’s revenue from fees and commissions swelled to $99 million at the end of March from $75 million for the 12 months to the end of December 2021 as it continued to win mandates to advise companies on their M&A plans. The investment bank advised Potentia Capital on its $562 million acquisition of Nitro Software, Mirvac’s $1.8 billion build-to-rent deal last year, and has been the go-to adviser for Woolworths.
Jarden is also advising KKR on its pursuit of Ticketek owner TEG, working on
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