Clime Capital seeks M&A opportunity amid industry consolidation
Clime Capital has indicated it could take up new M&A opportunities as the firm opts to hold onto cash rather than pay an interim dividend.
In its results for the six months to 31 December, the firm reported a $236k statutory net profit after tax (NPAT) which it said was down 47% from $445k a year ago due to planned integration costs of strategic acquisitions.
Having acquired wealth manager MTIS and Ralton Asset Management and formed strategic alliances with Marcus Today and Torica Capital, it indicated it could pursue more opportunities later in the year.
Chief executive, Annick Donat, said: “A growing industry demand for managed accounts, the private wealth merger with MTIS, the full acquisition of Ralton and the strategic alliances with Torica and Marcus Today positions Clime Group to provide high quality, diversified investment solutions across market segments.
“Given recent disruption and consolidations in the financial service sector, the group foresees a range of highly attractive opportunities. To be an active participant in the industry consolidation, the Clime board has elected to reserve capital in the first half of FY23 and not pay a first half dividend.”
Funds under management and advice increased by 8% from $5.1 billion to $5.5 billion during the six months and fund management fee income was $4.5 million, down $0.7 million on the prior corresponding period. This was related to the timing of net outflows and inflows during the six months.
Performance fees were $1.4 million from the Clime Capital listed investment company and Clime All Cap Australian Equity fund.
AUTHOR
Laura Dew
Recommended for you
AUSIEX has announced it will acquire FIIG, a specialist fixed income provider with $4.5 billion in funds under advice.
Platinum Asset Management has announced it is in discussions with a global alternatives fund manager regarding a possible merger to create an $18 billion firm.
Frontier Advisors has bolstered its Japanese footprint through a partnership with the $350 billion asset management arm of Nippon Life Insurance Company.
JP Morgan Asset Management has appointed an ETF specialist from Vanguard as it seeks to expand its ETF range.
