Lonsec has appointed a new chief executive for its research and ratings division in light of the deal between Generation Development Group (GDG) and Evidentia Group.
It was announced earlier today (10 February) that GDG will acquire 100 per cent of Evidentia Group in an upfront $320 million deal. Following the acquisition, Evidentia will merge with GDG’s Lonsec Investment Solutions under the name Evidentia Group.
GDG said in an ASX statement that this 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”.
GDG already owns 100 per cent of Lonsec, having increased its minority stake from 49.2 per cent last year.
Moving forward, GDG will operate as three distinct businesses; Generation Life, Lonsec Research and Ratings and Evidentia Group.
This will see Lonsec realign into two divisions: Lonsec Research and Ratings and Evidentia Group, which will include Lonsec’s Investment Solutions and Implemented Portfolios division.
As a result, current Lonsec chief executive Mike Wright will take up the role of chief executive of Evidentia Group. He has held the role at Lonsec since July 2021, having joined from the position of chief executive at Xplore Wealth. He will work closely with Evidentia co-founder Peter Smith who will take up the role of executive chairman of the newly-formed Evidentia.
At Lonsec Research and Ratings, which will bring Lonsec Research, iRate and SuperRatings under one brand, this will be led by Lorraine Robinson as chief executive. Robinson has been working as executive director of Lonsec Research for the past five years. Kirby Rappell, executive director of SuperRatings will continue to head up the superannuation research division.
Grant Hackett, group chief executive of GDG, said: “GDG is excited about the next growth phase for the newly formed Evidentia Group under Mike Wright’s leadership. Equally, the seamless transition of Lorraine Robinson to lead and guide Lonsec Research and Ratings provides a strong platform in support of GDG’s continued investment in the growth and success of our market-leading research business.
“Lorraine is the natural choice to lead the business in its next growth phase and continue to build on the integrity and proud Lonsec heritage of high-quality independent research and ratings services – upon which informed investment decisions are made daily.”
Wright said: “I am thrilled about the next iteration of Lonsec’s journey. This is a celebratory milestone for Lonsec and a testament to the entire team’s contribution to create today’s successful business. Lonsec Investment Solutions has made fantastic strides in the past five years, and it’s exciting to continue that, but also hand the research baton to Lorraine’s proven leadership.
“I’m excited to be working closely with Evidentia co-founder Peter Smith, who has built a phenomenal business over the past five years, and I believe the collective strengths of Evidentia, Lonsec Investment Solutions and Implemented Portfolios will provide unrivalled end-to-end managed account solutions for licensees, financial advisers, and their clients.”
Robinson, chief executive at Lonsec Research and Ratings said: “This realignment of the businesses, backed by GDG’s continued dedication to investing in our growth and continued success, will help us to drive innovation and explore new services for each of our unique client cohorts, working with them closely and remaining at the very forefront of the ever-evolving research sector.”
