Wilson HTM buys securities unit from parent company
Wilson HTM has jointly acquired the private wealth, corporate advisory, institutional equities and research business from its listed parent Wilson Investment Group (WIG), along with Deutsche Bank and Craigs Investment Partners.
The sale of the securities business followed an extraordinary general meeting of Wilson HTM Investment Group's shareholders on June 26, where the majority voted in favour of the sale.
Chairman of Wilson HTM Investment Group, Steven Skala, said the decision to sell the securities business came as the earnings stream of the business was unstable in the last few years, sustaining heavy losses in the 2012 and 2013 financial years, before posting modest profits in the 2014 financial year.
"The sale of the securities business therefore reduces the exposure of shareholders to its earnings volatility," Skala said.
"In addition, the board concluded that the future of the securities business is best secured if key staff members have significant stakes in management, ownership and control. This is to ensure their interests are aligned with the business to help drive profitability."
Current Wilson HTM chief executive Brad Gale will continue in his role and will be supervised by a board chaired by Craigs Investment Partners' managing director Frank Aldridge.
Wilson HTM also appointed Deutsche Bank's Rob Snow to the newly created role of head of capital markets.
WIG deliberated on holding a minority interest in the business but that would mean there would be inadequate equity available to staff to build a meaningful transaction.
The sale of the business now means WIG will focus purely on its funds management business in Priority Funds, and decreasing its corporate overheads.
AUTHOR
Malavika Santhebennur
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
