Centuria Capital doubles FUM
Centuria Capital has reported a 118 per cent growth in funds under management (FUM), from $1.9 billion to $4.2 billion, during FY17 which was helped by the acquisition of the $1.4 billion 360 Capital real estate platform.
At the same time, operating earnings per share (EPS) of 10.3 cps was in line with previous guidance and the company said it would expect its further grow by approximately five per cent in FY18.
The market capitalisation of the company increased from $80 million to $290 million over the same period.
Group’s chief executive, John McBain, said that the past year was ‘transformational’ for the company, with an unprecedented level of activity across all divisions, including the acquisition of the $1.4 billion 360 Capital real estate platform.
“This acquisition was a very significant contribution to growth in funds under management and our consequent increase in scale and market presence,” he said.
“The result has been a step-change or Centuria Capital, bringing our business to scale and this activity should enable near-term ASX 300 inclusion.”
According to McBain, the company also saw above-market growth in the investment bond business, supported in part from an increased interest from advisers looking to transfer and protect their clients’ wealth.
“Changes to superannuation regulations and uncertainty regarding negative gearing and family trusts also factor in peoples decision to consider our investment bonds,” he added.
“Our focus moving forward is to utilise our market-leading real estate and financial services capabilities to identify growth opportunities and to use our balance sheet strength to accelerate growth across our listed and unlisted property and investment bonds businesses.”
AUTHOR
Oksana Patron
Recommended for you
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
