WT Financial backs second ‘Hubco’ for advice duo
WT Financial has announced its second “Hubco” with a combined valuation of $7.8 million, while its first one has successfully incorporated and is now making its own acquisitions.
The idea of creating multiple Hubcos was created following the joint venture between WT Financial and Merchant Wealth Partners in March which saw the two firms form a new entity called Investco. Unlike traditional private equity, Investco takes non-controlling interests and offers “patient capital” to those with whom it partners, known as Hubcos.
The latest of these will be formed with Select Advice Group – which has offices in Brisbane, Melbourne and Sydney – and Newleaf Tailored Financial Solutions in Brisbane.
“This structure provides a strong platform for further targeted acquisitions to be originated and coordinated by WT Financial under mandate. Select principal Eric Bohl will serve as Hubco2 chief executive. He and fellow shareholder Declan Doolan will continue to advise clients and drive organic and M&A growth.”
On formation of the Hubco, Investco will hold around 36 per cent of the Hubco and WT Financial will hold 6 per cent directly. The remainder will be held by existing Select and Newleaf shareholders who will retain majority ownership.
Meanwhile, the firm’s first Hubco, which was formed from a trio of advice firms in April, has now been successfully incorporated as Titan Advice Group (TAG). Bringing together Titan Financial Planning, Darwin Financial & Retirement Services, and Wealth Connect Financial Services, TAG will have Titan principal David McLean as its chief executive and Merchant’s David Haintz as non-executive chairman.
With the company now finalised as TAG, its first move has been to acquire a Queensland-based advice firm Rushby Financial at a valuation of $2.8 million with settlement targeted for 1 October 2025.
Rushby principal Richard Rushby will remain in the business post-completion to advise clients, drive organic growth and mentor new advisers.
Keith Cullen, managing director of WT Financial and Investco, said: “Through Investco, we’re building a scalable platform, with each Hubco becoming a launchpad for further acquisitions and operational efficiencies that will enable advisers to thrive.
“The strength of our model is in partnering with ambitious advice practices, providing them with patient capital in partnership with Merchant Wealth, and supporting them to grow and corporatise without sacrificing their entrepreneurial character. We have a very powerful combination that we believe will deliver exceptional long-term value creation – for both the practices we partner with and WT Financial shareholders alike.”
AUTHOR
Laura Dew
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WT Financial’s managing director, Keith Cullen, believes the firm’s Hubco model with Merchant Wealth Partners will be a “repeatable growth model” for the business as it scales its adviser numbers.
