Epic venture braves financial planning and super business
Perth-based financial service boutique Epic Asset Management has completed its initial fund raising and acquired the assets of superannuation administrator Gilpear Group.
The company has raised $600,000 in convertible notes, which will convert into Epic ordinary shares at a 25 per cent discount if it decides to list on the Australian Stock Exchange.
Epic managing director David Newman told Money Management the review for a public offering will occur later this year and a decision on whether to proceed will occur then.
"We have now finalised our seed investors and we have the working capital to develop the business," he says.
"We will review our progress in the second half of this year and work out the timing and viability of the IPO."
Epic will operate in two areas of the financial services business, financial planning and a funds management arm which is being developed.
Plans include the development of a master trust, with the administration outsourced, and the establishment of a multi-channel distribution network using accounting groups and independent financial planners. Epic has signed an agreement with Montagu Stockbrokers to provide it with an in-house financial planning operation.
Epic currently has $140 million under management being handled by 30 proper authority holders. The assets of the Gilpear group include 350 self-managed funds, which have $70 million of funds under management. Epic expects this acquisition to generate revenues of almost $1 million from administration and related work, which will be charged on a fee for service basis.
The senior management of Epic have all come from senior positions in the financial services industry. Newman has been Western Australia state manager for both Tyndall and AMP while Manoj Pillai, who heads the investment services division, was formerly managing director of Quest Investment Services. The corporate solutions division of Epic will be headed by Rob McPherson who was the principal of AMP Consulting in Western Australia.
Newman says Epic is looking at expanding its capabilities, but he says the company will not be a consolidator.
"Any further acquisitions will be to give scale to the business and we are not trying to replicate a consolidator," Newman says.
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