Generation Development Group (GDG) is to acquire 100 per cent of Evidentia Group to create a managed account provider with over $25 billion in funds under management (FUM).
Evidentia was launched in January 2020 and provides tailored separately managed account portfolios and investment management services to private wealth firms and has $12.7 billion in FUM.
The merging of the two firms, GDG said in an ASX statement, will provide a “leading end-to-end investment management and managed account solution for licensees, financial advisers and their clients with minimal overlap in client bases, product offerings and target markets”.
The deal is for an upfront consideration of $320 million with a potential earn-out of of up to $40 million if the combined Evidentia and Lonsec managed account business achieves FY26 year-on-year revenue growth of 46 per cent.
Evidentia management will be retained post-acquisition, with Evidentia chief executive Peter Smith to become executive chairman and join the GDG board of directors.
GDG said the managed account market is estimated to grow at 15 per cent per annum to $474 billion by 2030.
Moving forward, GDG will operate as three distinct businesses: Generation Life, Lonsec Research, and Evidentia Group.
The deal is expected to complete in February 2025.
GDG chief executive, Grant Hackett, said: “This transaction represents another significant milestone in GDG’s growth strategy, following the successful acquisition of the remaining equity interests in Lonsec in 2024.
“Since launching in 2020, Evidentia has grown into a leading player in the rapidly expanding managed accounts market. The transaction presents a highly strategic growth opportunity for GDG, given the complementary nature of the Evidentia and Lonsec Investment Solutions businesses.
“Evidentia’s boutique tailored managed account solutions, client communications expertise and financial advice practice management experience, paired with Lonsec’s enduring heritage of knowledge, broad managed account offering and strength in research will deliver a more complete and scaleable offering.
“This will provide financial advisers and their clients with an even stronger value proposition, access to deeper insights, more extensive investment solutions and an integrated service experience that ultimately supports better outcomes for both financial advisers and clients.
“This transaction will be a continuation of the best-in-class services that both Lonsec and Evidentia have to offer.”
