First Capital to add Sovereign Capital to group
Property funds management group First Capital has signalled its intentions to buy Sovereign Capital, a Gold Coast-based construction lending business, for a purchase price of $3 million.
The acquisition will boost First Capital’s funds under management (FUM) by an additional $59 million and take the group’s total FUM to $89 million.
Once the purchase is complete, First Capital will take control of all of the funds that have Sovereign as their responsible entity, a move that will allow First Capital the most efficient method to offer its clients a new range of financial products.
Currently, both parties have only signed a heads of agreement for the acquisition, which is subject to board approval
It is anticipated the transaction will be completed 30 days after the sale agreement has been properly authorised.
It is proposed that the $3 million consideration will consist of a combination of bank finance and the issue of convertible notes and preference shares.
AUTHOR
Recommended for you
It can be extremely hard to realise the gains from financial advice M&A, according to Peloton Partners’ Rob Jones, and more could be gained from firms looking inward at their own practice.
With platforms reporting their quarterly results, there is a clear divide in the adviser markets they are targeting, according to platform specialist Recep Peker, and which would be right for your clients.
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.
