Private Equity Founders Bankroll Heath and Tucker’s Koda Capital

Private equity heavyweights are backing former boss of MLC Steve Tucker and ex-JBWere chief executive Paul Heath, who teamed up in late 2014 to form Koda Capital.

As the sun sets on traditional retail stockbroking, not everyone is headed for the exits.

It’s understood a collection of finance heavyweights are behind recently-formed Koda Capital, buying into the Sydney private wealth group.

Private equity veterans are at the front of the queue. Among them are Quadrant Private Equity boss and astute deal-doer Chris Hadley; Peter Wiggs, a member of the original Archer Capital team established in 1997 and chief executive; and Ironbridge founding partner Julian Knights.

Perhaps the connection is Koda Capital non-executive director Andrew Rothery, who founded Grant Samuel Private Equity and used to chair industry group AVCAL.

Either way, the private equity players obviously see an opportunity in independent private wealth at a time when there is significant disruption at the traditional houses including Macquarie Private Wealth, UBS Wealth Management, WilsonHTM and BBY Limited.

They’re backing former boss of MLC Steve Tucker and ex-JBWere chief executive Paul Heath, who teamed up in late 2014 to form Koda Capital.

Sources said Koda had already signed up 10 partners, including specialists David Knowles and Chris Wilson from JBWere and Macquarie veterans Simon Duckett and Charles Moore. It’s understood Koda is targeting a larger operation than rival start-up Escala.

WEALTHY INDIVIDUALS

Koda is focused on wealthy individuals, families and non-profit organisations and will create investment strategies, provide financial planning and advice to clients in the philanthropic sector.

Tucker, who left National Australia Bank in 2013, told The Australian Financial Review in December that Koda Capital would be “independent” and not be aligned with or owned by a financial institution, “as opposed to the vast majority of other wealth management firms in Australia.”

The news comes amid a spate of changes in the troubled private wealth space after UBS announced it was exiting its wealth unit and BBY entered voluntary administration.

Street Talk also understands NAB Private Wealth advisers are being further integrated with JBWere. There are around 30 advisers controlling over $2 billion in funds under advice expected to be affected, although some Melbourne-based advisers are yet to sign up to the new reporting structure.

JBWere is led by Justin Greiner, the son of former NSW premier Nick Greiner, but the business has long been a problem child for National Australia Bank.

Finally in private wealth, senior Macquarie adviser David Halliday left on Monday after 13 years with the bank. It is believed Halliday will join boutique investment bank APCL’s Sydney team to set up its corporate finance desk.

 

Read more at afr.com