- Private Banking services platform, based out of New Zealand
- 11% holding
- Invested at nominal value, latest investment at valuation US$10m
- Has authorities to operate
- Huge potential across S E Asia and beyond
In August 2017, Eight Peaks negotiated a 12% stake in IBS Corporation for nominal consideration, a newly established New Zealand entity. IBS aims to establish a banking services platform with the ability to provide a range of financial services including investment banking, asset management and debt funding services aimed at corporate and high net worth clients.
IBS initially intends to target opportunities in these areas, providing debt funding and taking equity stakes in New Zealand SMEs with strong management and with business models with the potential for internationalisation. These services are intended to be extended into other markets over time.
IBS commenced the process of obtaining the necessary authorities from the New Zealand regulators to be able to conduct these services shortly after establishment.
In November 2017, as a result of the progress made by IBS, initial third party seed debt investment was converted into equity and further equity was invested in IBS at a valuation of NZ$14.4m (£7.4m) valuing Eight Peaks’ resultant stake of 11.1% at NZ$1.6m (£826,000).
In line with Eight Peaks’ historic transaction based valuation policy, Eight Peaks holds its stake of 11.1% at the £7.4m valuation, or £826,000. This policy does not take any account of investee companies’ progress, nor of their further prospects since the latest transaction.
Since then, and post the balance sheet date, in April 2018, IBS was granted the authorities to operate by the New Zealand regulatory authorities.
While awaiting the authorities to operate, IBS has scoped several potential transactions. These transactions range in size from a few million dollars to several hundred million dollars plus. Following the granting of authorities to operate, work on making IBS operational has commenced.
With authorities to operate having been granted, IBS can commence providing services as a “challenger” financial services platform, initially focussing in New Zealand and with ambitions to expand further into the most dynamic regions in the world. IBS expects to grow its business and create value rapidly.
Eight Peaks views the investment in IBS as a strategic move which could accelerate the development of Eight Peaks. The activities of IBS are complementary to the activities of Eight Peaks thereby providing opportunities for cooperation and value generation for both Eight Peaks and IBS.