Westpac buys out Ascalon Capital
Westpac has made an in-principle agreement with private equity investment company Kaplan Equity to buy out Ascalon Capital Managers. The deal is expected to close in October, giving Westpac 100 per cent ownership of the boutique fund manager.
Formerly of St George Bank, Ascalon became part of the Westpac stable following the Westpac/St George merger late last year.
BT Financial Group's chief executive, Rob Coombe, said the move "was consistent with Westpac's overall objective to increase exposure to wealth management, particularly in higher margin products such as alternative assets".
Ascalon chief executive Andrew Landman echoed sentiments from Coombe that the acquisition was a testament to the strength of Ascalon's business model, and said it confirmed Westpac's previously expressed desire to add more boutiques to Ascalon's group.
Director Sam Kaplan said the decision to sell Kaplan Equity's shares in the boutique fund manager reflected its desire to focus its private equity investment on the logistics sector, where they are currently considering "several new opportunities".
Recommended for you
The Financial Advice Association Australia has released its pre-budget submission, including six key items to help reduce the cost of professional advice and increase its accessibility.
Phil Anderson, general manager for financial advice at the FAAA, believes the CSLR levy could reach $100 million if Dixon Advisory complaints are allowed to continue.
Proposed legislative changes to safe harbour duty could result in advisers having reduced professional indemnity costs, a joint submission by seven major licensees said.
With 66 per cent of newly established advice licensees being sole advisers, what are the risks and legal ramifications to consider when taking the plunge into self-licensing?