Treasury to merge with Northern Lights



Australia's publicly-listed Treasury Group Limited has today announced it has entered into an agreement to merge with privately-owned US-based multi-boutique funds manager, Northern Lights Group.
The intended transaction was announced to the Australian Securities Exchange (ASX) today with Treasury saying it was expected the merger would deliver significant strategic and financial benefits to Treasury and its shareholders.
Treasury managing director, Andrew McGill said in the ASX announcement that the transaction was expected to be materially accretive from completion and would deliver increased portfolio diversification while strengthening investment and distribution capabilities.
"We are delighted to join with Northern Lights, transforming both businesses into an international multi-boutique asset management group," he said. "For Treasury Group, the merger executes on key elements of our strategy, delivers significantly strengthened product distribution capability and leaves us ideally positioned for our next phase of growth across international markets."
The transaction will see the formation of a ew Australian Trust and Trustee Company which will own the interests in the combined 21 boutiques and give effect to the merger.
Treasury and Northern Lights will each receive units in the new Trust, equivalent to approximately 61 per cent and approximately 39 per cent holdings, respectively. Simultaneous with the merger, additional equity will be acquired in two Northern Lights boutiques.
Northern Lights shareholders will receive equity in the Trust, deferred cash payments and potentially contingent payments and earn-outs linked to growth in profit at some boutiques.
Management and operations will be integrated and the business will be operated as one group under the direction of a common Board of Directors.
Four Northern Lights nominees will join the existing five Directors on the TRG Board. Andrew McGill will be Managing Director and CEO of the merged group and Mike Fitzpatrick will be Chairman. Northern Lights co-founders Tim Carver and Paul Greenwood will be Executive Directors. Jeff Vincent, CEO of Laird Norton, and Gilles Guerin, CEO of BNP Paribas Capital Partners, will join the TRG Board as non-executive directors.
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.