First Capital strategic acquisition
Brisbane-based listed financial services company First Capital Group is maintaining its growth strategy, announcing it will be raising up to $20 million to buy a strategic stake in Sydney-based separately managed account (SMA) funds manager Explorer Group Limited.
The announcement of the Explorer Group transaction came at the same time as First Capital said it would be expanding its financial services reach later this year with the launch of First Capital Wealth — a vehicle designed to acquire small to medium-sized accountancy practices on a lease-back basis
The announcement follows-on from First Capital last month gaining shareholder approval to purchase a 100 per cent shareholding in Explorer for $14.6 million.
First Capital managing director Less Freeman said the purchase of Explorer Group was a natural growth progression for First Capital Group in the financial services and funds management sectors.
“We see SMAs as the future of wealth management, and by acquiring Explorer Group we are therefore offering the best SMAs in the marketplace through products such as Director Portfolio and Share Invest,” he said.
AUTHOR
Mike Taylor
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