AZ NGA acquired today a 51% underlying stake in Lifestyle Financial Planning Services (LFPS). The agreement includes a share swap of 49% of LFPS’s equity for AZ NGA shares and a progressive buy back of these shares over the next ten years.
This third agreement follows the recently announced deals reached with Eureka Whittaker Macnaught (EWM) and Pride Advice (Pride) is a continuation of AZ NGA’s plans of consolidating Australian financial practices providing wealth management services to local retail, HNW and institutional clients in Australia.
LFPS was established in 2004 by David Lannen and manages over A$ 180mn of assets under advice, and provides services to over 2,000 clients. LFPS employs 9 staff in its Victorian-based practice operating out of Geelong, Shepparton and Echuca. LFPS offer 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, Adelaide and Victorian offices.
LFPS’s achievements, both as an organisation and individuals within the organisation, have been recognised over many years and include Victorian & Tasmanian Financial Wisdom Practice of the Year awards for 2006, 2011, and 2014. David Lannen, Tim Easton, and Lisa McPherson will continue to lead the businesses financial planning activities and have entered into long-term arrangements to ensure continuity of services.
Paul Barrett, AZ NGA CEO states “We are delighted to have launched our Victorian operation with such a high calibre group. LFPS is an impressive firm with strong leadership team. David, Lisa and Tim have established a long term track record at providing first class professional advice and have been very well recognised for their success. ”
David Lannen added “The AZNGA opportunity has come along at a great time for us. We are very focussed on growing our business and our new partnership will enable us to enhance our growth and be part of something really special for our clients, and our staff. AZNGA offers a unique succession solution for our firm, and importantly will enable us to attract other financial planning firms who are looking for a succession solution.”
AZ NGA announced its first acquisition on May 8th, 2015, when it acquired EWM. Then on May 27 it announced its second acquisition when it acquired Pride Advice. In line with its long term business plan, AZ NGA will continue 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: “Our Australian partnership model is growing at a rapid speed in terms of size and professional people involved and we are very satisfied to have already reached a solid starting point in terms of AuM and clients. The first semester of 2015 has been the best Azimut Group’s history, thanks to the contribution of all business units and divisions. We continue to grow in Italy with excellent results, while remaining focused on developing our presence in higher growth markets overseas, which represent today over € 4.1 billion, or 12% of our total assets.
The Australian wealth management industry is the largest market in the Asia Pacific region and the 4th largest in the world with over A$2.41 trillion (equivalent to € 1.72 trillion) in AuM as at June 2014. Australia has one of the world’s leading pension system (Superannuation), which has underpinned the growth of the Australian asset management industry. As at June 2014, Superannuation funds represented A$ 1.74 trillion (€ 1.24 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.
