Diversa adds another string to wealth management bow
Listed wealth management company Diversa has continued its recent expansionary activity by taking a stake in Michael Birch’s boutique funds management business.
Birch established specialist Australian equities manager Huon Capital this year, having previously worked for MMC Asset Management, Wallace Funds Management, UBS Warburg Australia and Macquarie Bank.
Diversa has acquired a 20 per cent ownership stake in Huon Capital, with an outlook to increase its ownership to as much as 40 per cent over the next two years.
The consideration is for an initial payment of 500,000 ordinary shares in Diversa and up to a further 1.5 million shares if performance hurdles are met over the next three years, the group’s statement to the Australian Securities Exchange said. Diversa shares were last trading around the 10 cent mark.
Huon Capital has around $40 million of funds under management in its Australian Share Fund and Value Growth Trust, with the funds being established in 2000 and 2003 respectively.
Diversa said the acquisition complements its acquisition of Super Promoters business in March and the MARF business in September this year. The group said it is working to develop an “emerging wealth management company” and will “continue to examine opportunities to expand its wealth management offerings and capabilities” next year.
The agreement with Huon Capital is subject to a number of conditions.
Recommended for you
With active ETFs becoming the latest choice as fund managers target the retail audience, their high fees may be a detractor as research finds investors are shunning those priced any higher than 50 bps.
The possibility of a dissenting vote from shareholder L1 Capital has led Platinum Asset Management to scrap its conversion plan for the $450 million Platinum Capital LIC into an ETF.
Family office Lederer Group has made an off-market takeover bid for ASX-listed Elanor Commercial Property Fund, with chair Paul Lederer taking exception at the firm’s lack of accountability, oversight and transparency.
Janus Henderson is actively seeking to partner with private wealth firms in Australia as it looks to expand its number of strategic partnerships, as well as focus on retirement income product development.
