Four months after making its first equity partnership, the Australian Wealth Advisors Group (AWAG) has taken a second stake in a regional Victorian advice firm.
In July, Money Management wrote how AWAG had taken its first 20 per cent stake in Melican Financial Planning, a financial planning business in Greensborough, Victoria, for a cash consideration.
AWAG’s business strategy revolves around taking consultative equity positions into successful, highly profitable and sustainable businesses nationwide. Its EPS model will see AWAG make a 20 per cent investment in a financial services business for cash, scrip or a hybrid cash/scrip option, and receive a royalty payment based on the gross revenue of the business.
It has now taken a second 20 per cent stake in Beattie, a financial services company offering financial planning and accountancy services based in Bendigo and the Bellarine Peninsula. Beattie Financial Services was founded in 2006 by financial adviser and chartered accountant David Beattie.
The firm said: “AWAG’s investment is predicated on assisting with the growth of both locations as well as seeking out further acquisitions for Beattie which will be funded from our recently launched AWAG Succession Fund.”
It has also onboarded a financial planning firm called Sapphire Wealth as an authorised representative in its wealth management advisory business CHPW Financial. This follows the onboarding of another Melbourne firm called Murdoch Wealth to CHPW Financial in July.
The firm stated: “Sapphire is a strategic initiative enabling us to either on board more authorised representatives from the local area or invest in financial services practices directly. We see this region as a growth corridor.
“The two businesses have a combined FUA of $336 million and FUM of $168 million. We welcome both firms and look forward to their overall success and contribution to AWAG.
“AWAG has an active pipeline of both EPS investments as well as the planned onboarding of authorised representatives into our wealth management advisory services business, CHPW Financial. As the advice market continues to see significant change and consolidation, we are systematically growing our operations profitably and establishing AWAG as a key participant in this sector.”
Earlier this month, Money Management spoke with Count chief executive Hugh Humphrey, who discussed the licensee’s goal of working with integrated financial planning and accountancy firms as clients opt for a streamlined service.
Humphrey said: “The businesses we tend to partner with or invest in are those with integrated financial planning and accountancy services or have joint ventures with accountants. Our skill comes in where we have always had an integrated model and the market recognises that we are a standout in offering both services.
“While we talk about integration, it’s not one person doing both. They are both broad skill sets, but what the client wants is not to have to give the same data to two different providers and have the same conversation twice. When it comes to do their tax return, they need the confidence that it has been done in an integrated way.”
