AZ NGA acquired today a 51% underlying stake in Eureka Whittaker Macnaught (“EWM”). The agreement includes a share swap of 49% of EWM’s equity for AZ NGA shares and a progressive buy back of these shares over the next ten years.
AZ NGA 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. AZ NGA was established in November 2014 with the acquisition of Next Generation Advisory Pty Ltd (NGA) by Azimut. NGA had previously been established by Paul Barrett (former Managing Director Global Advice & Distribution at ANZ). AZNGA was established with the purpose of consolidating financial planning businesses who provide wealth management services to local retail, HNW and institutional clients in Australia. EWM is AZ NGA’s founding firm and the agreement represents a significant milestone for the Group to pursue its growth plans in the Australian wealth management industry.
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Eureka was established in 1993 and now has over A$ 520mn of assets under advice, and provides services to over 5,000 clients. EWM employs 29 staff across its Sydney and Brisbane operations. EWM boasts 11 financial planners, 3 para-planners and 8 client services officers providing investment and asset allocation advice, retirement planning, insurance, aged care and strategic financial planning advice to its clientele.
EWM’s achievements have been recognised over many years and include the Financial Wisdom Practice of the Year 2011 and 2014, and finalist in the Professional Planner Magazine’s Practice of the Year 2013. EWM has Professional Practice status with the Financial Planning Association. EWM CEO, Greg Cook, has been nominated as a finalist in 2015 Money Management Financial Planner of the Year, he is a Fellow of the Financial Planning Association (“FPA”) and member of the FPA’s Conduct Review Commission judiciary.
The total value of the transaction considering both the cash and share swap entails a gross business valuation of A$ 9.6mn. The closing of the transaction is expected to occur within the next few weeks. The existing leadership team of Greg Cook, Andrew Jones, and Sally Bell will continue to lead EWM in the roles of CEO, CFO, and State Manager (Queensland) respectively and are entering into long term arrangements to ensure continuity of services. Paul Barrett, AZ NGA CEO states “we are delighted to have secured a partnership with such a high calibre firm. Greg, Andrew, and Sally have built a highly successful firm over many years. The 2013 acquisition of Whittaker Macnaught by Eureka demonstrated the strong leadership qualities of the team. Together they have assembled a team of skilled professional planners who represent the next generation of professionals in our industry.”
Greg Cook will be appointed board member in AZ NGA, and Andrew Jones will become the first adviser representative on AZ NGA’s research committee. Mr Barrett adds “I am excited about the contribution that Greg and Andrew will make to the broader AZ NGA Group. Greg has been a big contributor to our industry through his involvement in a variety of industry bodies, and board committees, and Andrew has a deep expertise in the planning process and portfolio construction which we are looking to leverage.”
Greg Cook, CEO of EWM says “This transaction heralds a new era of growth for Eureka Whittaker Macnaught. Together with AZ NGA we are going to grow our business for the benefit of our clients and the career path of our team members. And this is a great opportunity for me to thank Chris Wrightson from Centurion – he helped us structure a deal that will work well for everybody over the long term.”
AZ NGA, in line with its long-term business plan, has shortlisted a number of high quality financial planning firms and is currently performing its final due diligence on its next partnership, which will be announced soon.
Pietro Giuliani, Chairman and CEO of Azimut Holding, comments: “In November 2014 we announced our intention to build a greenfield project in the Australian asset management industry by consolidating and growing financial planning businesses over the long term. We are very satisfied to start this new venture with EWM, a very successful business with a talented and respected management team.”
Source: Next Generation Advisory
