DASH Technology Group has announced the acquisition of a portfolio administration solution, set to bring the firm’s funds under administration (FUA) above $15 billion.
The financial planning software and platform provider has entered into a binding share purchase agreement to acquire Integrated Portfolio Solutions, a portfolio administration solution with $10.6 billion in FUA.
Integrated Portfolio Solutions acts as a “whole-of-wealth” non-custodial platform and removes the burden of portfolio administration. It currently services investment advisers, family offices, financial planners and ultra-high-net-worth direct clients.
According to DASH, the deal will enable the group to develop a new advice model and will grow DASH’s FUA to more than $15 billion.
The acquisition will also see the entire Integrated team join the DASH business with no disruption to service. Darryl Johnson, Integrated co-founder and executive director, and Mark Papendieck, Integrated chief commercial officer, will sit within DASH’s executive team reporting to chief executive Andrew Whelan.
Darren Pettiona, DASH’s executive director of strategy, described: “Integrated is a synergistic fit and aligns perfectly with our strategy to assist advisers and institutions deliver a cost-efficient, scaleable advice offering accessible to all Australians.
“Platforms should manage and report on assets in a way that provides a cost-effective outcome. Traditional platforms have struggled to effectively manage and report on non-custodial assets, akin to fitting a square peg into a round hole.”
Johnson said Integrated had assessed a wide range of potential platform technology stacks on the market before making a decision.
“DASH was the standout. We know that the next 10 years in the industry won’t look anything like the last 10, and having the most modern, functionality-rich technology on offer will position us and our clients at the forefront of that change,” he explained.
“Having access to an end-to-end suite of wealth management technology where you can use all of it, or part of, or plug in what you already use via the many integrations DASH offers, is a game changer for our clients.”
What makes DASH unique, Pettiona added, is that it offers both a financial planning software and investment platform side-by-side. Following Iress’ sale of its OneVue platform business to Praemium, DASH has become the only player to offer both services in one shop, the group stated earlier this year.
“To win the race and support of advisers, providers must demonstrate added value beyond basic administration. This includes delivering efficiencies to adviser practices, reducing the cost of delivering advice, and enhancing margins for planners who bear the cost of providing this advice,” Pettiona continued.
The technology group facilitates every step of the advice delivery process, from client fact-finding to statement of advice generation and execution of advice recommendations.
Last month, DASH appointed Jim Lim as its new chief technology officer, replacing Ted Tsao who held the role for two years. The addition of Lim will help facilitate the business’s next phase of growth.
