Paul Heath (left) and Paul Begley

In another scale play for the advice industry, high-net-worth advice firm Koda Capital will merge with Perth-based Redwood Wealth Alliance.

Founded in 2014 by the former chief executives of MLC and JBWere, Steve Tucker and Paul Heath, Koda has 46 partners including 38 advisers who manage $10 billion in client funds.

Rather than expand directly in the WA market, Koda felt the better solution was to merge with an appropriate partner.

“We always were looking for the right cultural fit and the right team of talent that we felt could take the Koda toolkit and then approach that market,” Heath tells Professional Planner.

“We use the word ‘merge’ very deliberately. All of the team at Redwood are going to become shareholders in Koda. They’re not cashing out; they’re maintaining a material holding in the business via a holding in Koda.”

Redwood shareholders will join Emigrant Partners who also bought a stake in Koda earlier this year.

Redwood managing director Paul Begley says Redwood has been on a journey to create a legacy for the firm’s clients and team members.

“Engaging in a transaction like this it was important for us to continue on that journey,” he says.

Four years in the making

The companies met four years ago, but the timing for a merger never really worked until collaboration on projects in the past year created a catalyst to join forces.

“The Koda team and ours operate with a growth mindset,” Begley says.

“In that respect, we look for opportunities to learn from the best in the industry.

“Having an understanding of what their vision was has meant we’ve stayed in close contact over that period of time.”

That opportunity to collaborate also helped give Redwood insight into the working culture of Koda and the professional approach the company takes.