Coastal Advice Group has entered a long-term strategic partnership with Merchant Wealth Partners to accelerate its expansion across Australia.
The financial advice business already has seven offices across Australia, including Sydney, Adelaide and Perth, servicing more than 2,500 clients across the country, and is keen to expand further.
Meanwhile, Merchant Wealth Partners is a New York-based capital partner that provides growth capital, management resources, strategic advice and opportunities to advice and wealth management firms globally. The firm has partnered with 101 companies in six countries and collectively manages over $290 billion in assets.
According to Coastal Advice, the partnership will allow Coastal to unlock growth and innovation opportunities, strengthen its ability to attract and retain talent, invest in new technologies, and foster a supportive workplace culture.
Merchant has also taken a minority, non-controlling position in Coastal Advice as part of the partnership, providing capital to drive the advice firm’s expansion.
Moreover, David Haintz, head of Merchant Australia, will join the board of Coastal Advice to drive further growth, having consulted and worked with the business previously for four years.
“I have known and worked with the Coastal team for a number of years in which time they have undertaken more than 20 M&A transactions. In partnering with Coastal Advice, Merchant has now provided the capital to enable their growth to accelerate,” Haintz commented.
In late 2023, Coastal Advice announced the acquisitions of two advisory practices, one in Adelaide and the other in Port Macquarie. This saw its funds under management rise to more than $1 billion at the time.
Daniel Brown, Coastal Advice chief executive, said the company was thrilled to commence this “exciting new phase” through its partnership with Merchant.
“This partnership brings new opportunities for growth, reinforces our commitment to delivering the best client experience, and supports our long-term vision of becoming the leading provider of financial advice in Australia. We look forward to tapping into Merchant’s industry expertise and expanding our global reach to drive continued success,” Brown said.
Coastal Advice offers a range of services, including aged care, estate planning, investment advice, life insurance and retirement planning. With its head office located in Newcastle, the group currently has 57 staff members including 15 financial advisers.
The announcement reflects the broader trend of US-based private equity firms taking an interest in the Australian wealth management market.
Finura expects the “great privatisation of wealth” to continue in 2025, with names such as AMP, Iress, Praemium and Bravura to potentially gain interest from private equity firms this year, the consultancy predicted.
