Investment fund established to finance advice, accounting succession

Mike Taylor

Managing Editor/Publisher, Financial Newswire

13 November 2024

Do financial advice and accounting succession plans represent an investment opportunity?

Publicly-listed Australian Wealth Advisors Group (AWAG) certainly thinks so, having entered into a partnership with Teaminvest Private to launch a “Succession Lending Fund”.

The fund is aimed at attracting sophisticated and wholesale investors.

The two firms have announced to the Australian Securities Exchange (ASX) that the fund is designed specifically to address the growing need for succession planning within the accounting and financial planning sectors.

Describing the fund as a cash flow lending products, the firms said the fund would support “high-quality firms in several key areas such as:

• Equity Transition – facilitating the transfer of ownership from seior partners to emerging leaders within the firm.
• Growth initiatives – Enabling strategic acquisition of complementary businesses
• Talent retention – providing lending solutions that help retain and invest in quality staff.

The ASX announcement said that all loans would be fully assessed and appraised, with each borrower assessed under core lending criteria around reputation and experience, value and quality of assets and ability to replay based on profit, cash flow and financial stability.

The two companies said the Succession Lending Fund presented an attractive opportunity for sophisticated and wholesale investors seeking targeted returns and regular cash distributions.

The announcement said that the fund had been seeded by AWAG and is already operational.