Barrenjoey merges with Magellan to chase private-market growth
Barrenjoey and Magellan merged in July to chase private-market opportunities.
Barrenjoey, a six-year-old investment bank, and Magellan, a fund manager, merged in July. The combined firm is expected to be renamed Barrenjoey Group at its October annual general meeting.
The two are betting on private markets, where returns are higher and fees are better than traditional stock picking. Barrenjoey and Magellan invested in Guzman y Gomez, the burrito chain.
When GYG listed in 2024, it was valued at $2.2 billion. Shares later jumped to $40 (a $4 billion value) before falling 60 per cent to $15.
That windfall enriched Barrenjoey staff who held shares and showed the bank what it could achieve. Now the merged firm plans to replicate that success on a larger scale.
- $95 million in 2021
- Magellan's GYG investment
- $2.2 billion at $22 per share
- GYG IPO valuation
- $40 (valuing company at $4 billion)
- GYG peak share price
- July 2026
- Merger completion date
Why it mattersSignals a shift in Australian investment, away from picking public stocks toward earlier-stage private deals.
