AZ NGA acquired today a 51% underlying stake in Pride Advice (Pride). The agreement includes a share swap of 49% of Pride’s equity for AZ NGA shares and a progressive buy back of these shares over the next ten years.
This second agreement follows the recently announced deal reached with Eureka Whittaker Macnaught (“EWM”) and confirms AZ NGA’s objective of consolidating Australian financial practices providing wealth management services to local retail, HNW and institutional clients in Australia.
AZ NGA was established in November 2014 and is part of Azimut Group, Italy’s leading independent asset manager, established in 1989 and today operating in 13 countries with more than € 34bn (equivalent to A$ 48bn) in AuM
The Pride Group was established in 2003 by Brett Schatto and manages over A$ 180mn of assets under advice, and provides services to over 1,700 clients. Pride employs 9 staff in its Adelaide-based operations offering a comprehensive range of financial planning services including investment and asset allocation advice, retirement planning, insurance, and strategic financial planning advice to its client base. Together with EWM and Pride AZ NGA’s business model will assist clients from its Sydney, Brisbane and Adelaide offices and grow the distribution reach by attracting financial planners as well as continuing its consolidation plan.
Pride’s achievements, both as an organisation and individuals within the organisation, have been recognised over many years and include RI Advice Practice of the Year for business growth 2006 & 2009, Proprietor of the Year 2010 & 2011 (Wealth Protection), Top Achievers Club (Platinum) qualification for 2006 & 2010- 2014, Top 10 for AFA Adviser of the Year 2012, and Beddoes Institute Most Trusted Adviser Network 2014 & 2015. Brett Schatto, Pride CEO, will continue to lead the business and has entered into long-term arrangements to ensure continuity of service.
Pride operates under the RI Advice Australian Financial Services License.
Paul Barrett, AZ NGA CEO states “Pride Advice is a leading professional financial planning firm as well as a very fast growing business. Brett is a pioneer in modern professional financial planning and we are thrilled to have Pride in our stable of firms.”
Brett will also be appointed board member in AZ NGA. Brett says “We are delighted to be involved with such an exciting project. We are looking forward to working AZ NGA in continuing to deliver great results for our clients. The uniqueness of the AZNGA succession solution and its open architecture approach in relation to platform use and licensee choice are very appealing to our clients and staff alike. It allows us to grow confidently into the future whilst always keeping our clients’ best interest at the forefront of everything we do.”
AZ NGA announced its first acquisition on May 8th, 2015, when it acquired EWM. In line with its long term business plan, AZ NGA continues to acquire high calibre businesses and has shortlisted a number of high quality financial planning firms for potential consolidation.
Pietro Giuliani, Chairman and CEO of Azimut Holding, comments: “We have recently started our greenfield project in the Australian market and we are glad to announce today that another successful financial practice with a strong entrepreneur is willing to come on board and develop a powerful business in the wealth management industry. AZ NGA starts from a solid base of A$ 700mn in AuM, two profitable practices with almost 7,000 clients and a strong management team. Our objective is to continue along this path for the benefit of our stakeholders.”
The Australian wealth management industry is the largest market in the Asia Pacific region and the 4th largest in the world with over A$2.41 trillion (equivalent to € 1.70 trillion*) in AuM as at June 2014. Australia has one of the world’s leading pension system (Superannuation), which has underpinned the growth of the Australian asset management industry. As at June 2014, Superannuation funds represented A$ 1.74 trillion (€ 1.23 trillion*) in AuM, of which around 50% is allocated to equities. Australians contribute a compulsory 9.5% of their salaries to Superannuation funds and the Government is signalling its intent to gradually lift this rate. Currently, over 16,000 financial planners operate in the marketplace, playing a key role in advising clients on their savings.
Source: AZ Next Generation advisory
