Charterbridge signs up for Davey
After more than a year of searching, Davey Financial Management has found a buyer for its financial services business.
Charterbridge Financial Management acquired the group late last month for an undisclosed amount. Davey's superannuation administration business has also been offloaded to Tyndall.
As reported in Money Management last February, Davey had been approached by a number of groups interested in purchasing the business.
Davey managing director Michael Clayton signalled at the time that the group was looking for an injection of capital to further expand its services for high income professionals.
Davey specialises in looking after doctors and dentists which fits well with Charterbridge's target market of executives on salaries exceeding $150,000, according to Charterbridge managing director Venn Williams.
Both groups offer integrated financial services including investment advice (through senior consultants), investment finance, accounting, property management and legal services. The two groups also have a similar corporate culture, including a strong emphasis on fee-based revenue streams.
Williams says the merged group, as yet unnamed, will be positioned similar to a European-style private banking operation.
"Our clients are very focussed on their own careers and often don't have time to look after their own affairs," Williams says.
"We are not transaction-based businesses. We are not looking for one-off lump sum or redundancy clients. We are looking for long-term relationships with clients as they accumulate assets."
Clayton says the private banking model is destined to grow in popularity as advisers look to provide total client service.
"It is the next generation of financial advice providers," he says. "Most advisers rely on relationships with accountants, lawyers and banks to provide total financial care. The danger with this strategy is the tendency to pass on blame when something goes wrong."
Williams, who will take over as the managing director of the merged operation, says all staff, including directors, will remain with the group bringing total staff numbers to 180.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
