WHK buys stake in Next Financial
WHK Group continues to position itself as a contender in the financial services industry, with the accounting group announcing the purchase of a 30 per cent stake in Next Financial.
The stake in Next Financial follows WHK Group’s 16 ‘tuck in’ financial planning member firm acquisitions in the past seven months.
Under the terms of the stakeholder arrangement between the two groups, WHK Group will invest $5 million in the investment manager by subscribing for new shares and will acquire shares from existing shareholders to make up its 30 per cent stake. It will also involve the payment of cash and the issue of approximately 1.4 million shares in WHK Group. The deal is expected to be effective from May 15.
WHK Group managing director Kevin White said his group is “ideally positioned” to support the growth of Next Financial’s products and services.
“As such, WHK Group regards its investment in Next Financial as strategic and will, importantly, enable member firms to better service certain client segments, in particular high income earners as opposed to high-net-worth clients, who are presently well accommodated by WHK Group’s financial planning network,” White said.
Next Financial has client assets and liabilities of approximately $1.9 billion, with more than 3,000 clients and 70 staff in Sydney, Melbourne and Brisbane. The investment manager is also a leading player in the Separately Managed Accounts (SMAs) sector, with the group having more than $250 million in SMAs.
WHK Group has 20 member firms across Australia and New Zealand, 19 of which are accounting firms and one a specialist financial planning firm.
As Australia’s fifth largest accounting firm, and second largest independent distributor of financial planning advice, WHK Group has funds under advice at December 31, 2006, of approximately A$7.5 billion.
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