Marac plans to transform from a finance company into a bank and is divesting itself of $160 million worth of property development loans as part of the change.

Meanwhile, Perpetual Trust – often considered a sleepy trustee company – is to become more of a fund manager.

The key part of this change is a proposal to buy asset management firm, Equity Partners Asset Management, for $18 million.

EPAM is a company controlled by George Kerr. Kerr has had a long history in the industry starting as analyst with FundSournce, when it was IPAC, a role at NZ Funds Management and after that he was a key player in the development of the Spicers financial planning group.

EPAM is focussed on infrastructure and credit. Its highest profile public offer was when it raised money to acquire a stake in Thames Water. Recently it invested into Moto International Holdings.

Under the proposal EPAM will become part of a new PGC group company, Perpetual Asset Management to be chaired by Kerr.

This company will both manage and own cornerstone shareholdings in major funds, initially focussed on infrastructure and real estate credit assets and, in time, other asset classes including agri-business.

EPAM is currently developing a real estate credit fund - Torchlight Credit Fund – which will acquire the Marac property development loans.

“The development of this major asset management arm for PGC will enable the group to offer a comprehensive suite of financial services to all clients and stakeholders across the PGC group,” the company says.