Western Pacific buys into boutique managers

The venture capital arm of Perth based dealer group Western Pacific has taken minority stakes in two boutique fund managers — MMC Asset Management and Select Asset Management.

Western Pacific Investments has made the move as part of what chief executive Geoff Pritchard was a strategy to build a financial services company that offers advice, as well as manufactures products.

“Western Pacific continues to move towards a strategy of building an end-to-end financial services business and be able to increase these holdings in both entities into our venture capital business,” he said in a statement today.

The company is holding more than 20 per cent in both boutique fund managers having acquired the shareholdings from senior advisers within the Western Pacific dealer group.

Pritchard said the acquisition of the stakes in MMC and Select has allowed more than $8 million to be returned to the group’s shareholders.

The financial services company is now 95 per cent owned by its advisers having bought out the foundation shareholders late last year.

Western Pacific is continuing to look for other fund management investments as well as establishing its own management operation — Western Pacific Asset Management — which now has $150 million funds under management.

“We will continue to hold and acquire strategic investments in asset management companies that are aligned to our absolute return philosophy,” Pritchard said.

“We will also continue to acquire quality financial planning businesses on the east coast.”

Pritchard said the company is looking for a partner to help it grow its insurance business as part of Western Pacific expansion plans.

Recently the company sold its 20 per cent stake in the Symetry platform to CBA and Acumen Capital Securities to Multiplex

Western Pacific has $1.2 billion of funds under administration and management.