The Fin Australia’s new millionaires factory: start-up to $1.6b in 5 years
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Mar 25, 2026 Emma Rappaport, co-editor covering investment banking and corporate deals, and Jonathan Shapiro, senior markets and corporate reporter, break down the Magellan–Barrenjoey tie-up. They discuss the deal mechanics and reverse takeover feel. They explore Barrenjoey’s rapid rise, its generous pay and equity model creating paper millionaires, plus retention, governance and valuation debates.
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Magellan-Barrenjoey Deal Is A Reverse Takeover
- Magellan is buying the remaining two-thirds of Barrenjoey by issuing Magellan shares and valuing Barrenjoey at just over $1.6 billion.
- The deal functions like a reverse takeover because Barrenjoey will hold majority control and drive the combined group's strategy and branding.
Bloody Monday Hiring Spree Built Barrenjoey Fast
- Barrenjoey was built by ex-UBS bankers Matthew Grounds and Guy Fowler who executed a large recruiting 'Bloody Monday' raid to bring talent across from competitors.
- That aggressive hiring, equity for new bankers, and 'elbows out' deal-making put them in top league tables within five years.
Magellan's Core Business Shrunk Dramatically
- Magellan's funds under management fell from about $118 billion to $40 billion after COVID-era positioning and performance missteps, hurting its core business value.
- Founder Hamish Douglas's role diminished amid performance, lost mandates and personal turbulence, prompting a reassessment of Magellan's strategy.