Prime Financial seeks to launch alternative asset manager with acquisition

prime financial group acquisition Alternatives private equity private credit simon madder

12 February 2024
| By Laura Dew |
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Advisory, capital and asset management group Prime Financial has announced it will acquire fund management platform Altor Capital as it seeks to launch a diversified alternative asset management business.

In an ASX announcement, the firm said Altor Capital’s platform has an annualised revenue of $1.8 million, and the team of seven will join Prime’s Brisbane office while it will also acquire Altor’s private equity and private credit funds.

The firm’s platform covers distribution and administration, and Prime said it will “look to leverage this capability and build out a diversified alternative asset management business under its wealth management offering”.

The initial consideration is for $1.5 million but a purchase price payable not exceeding $4.2 million over three years subject to EBITDA achievements of $0.7 million during the period. All considerations will be split in half between cash and Prime Financial shares.

Prime chairman and managing director, Simon Madder, said: “Our goal is to double group revenue between FY22 and FY25 to $50 million through organic and inorganic activity, enhancing our capability across advice, capital and asset management for our business and wealth segment clients.”

He said the acquisition meant Prime is “well placed” to meet the $50 million target and to double that again to $100 million within three to five years of FY25.

Altor director, Harley Dalton, said: “In Prime we have found the optimal long-term partner to leverage the alternative asset platform we have built over the last six years. Like Prime, we share a client-focused culture. The support Prime offers, combined with the autonomy of our investment and distribution teams, will ensure we continue to strive to deliver attractive returns to our clients.

“Prime has a clear strategy to grow (both organically and inorganically), and we are pleased to be joining a team that is highly focused on being a leading provider of alternative assets.”

Completion of the deal is subject to closing conditions.

Click here to listen to Money Management's Relative Return episode with Prime chairman Simon Madder.

 

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