Is Insignia good value?

Mike Taylor

Managing Editor/Publisher, Financial Newswire

23 July 2025

ANALYSIS

It says much about US private equity player, CC Capital’s decision to pursue to finality its acquisition of Insignia Financial that equates to $4.80 per share that, less than a year ago Insignia shares were trading for just $2.22.

Somewhat inevitably, then, questions must be asked about what has prompted a seemingly hard-nosed US private equity player to bid $4.80 per share for a company which struggled to fully emerge from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industry at the same time as bedding down multiple complex acquisitions.

It is not so long ago that market analysts were openly questioning whether Insignia had bitten off more than it could chew with its 2020/21 MLC from National Australia Bank and its equally chunky purchase of ANZ’s OnePath Pensions and Investments business.

In truth, CC Capital has found Insignia Financial an attractive acquisition target because Insignia has not only digested the MLC and ANZ acquisition but also streamlined itself whilst largely discarding its financial advice business and effectively outsourcing high cost administration and technology functions, notably to SS&C.

Thus, under the leadership of Insignia chief executive, Scott Hartley Insignia has settled down the MLC and ANZ acquisitions and sensibly opted to leverage the high value MLC brand for its key retail financial services offers.

Then, too, it has consolidated its platform presence whilst building out its wrap products and joint venturing into the retirement and annuities space.

Hardly surprising, then, that Hartley yesterday pointed to achieving milestones such as the administration and technology deal with SS&C and the improved fund flows generated by a more competitive platform offer.

Hartley and the Insignia board clearly worked hard to keep the CC Capital bid on foot particularly in the aftermath of the other major private equity player, Bain Capital, deciding to exit amid the US Trump administration’s tariff gyrations.

Insignia’s announcement to the ASX about entering into a Scheme Implementation Deed with CC Capital noted that the offer represents a 56.9% premium to Insignia’s undisturbed closing price on 11 December, last year, the last day of trading prior to the original Bain Capital bid.

The company framed the board’s unanimous recommendation that the deal be accepted by shareholders in the context of the “lengthy and comprehensive due diligence process undertaken by CC Capital in formulating its binding offer.

It also noted “the significant premium offered and the opportunity for Insignia Financial shareholders to realise certain cash value given the Scheme isfor100% cash consideration; and the recent potential impact of market volatility on global capital markets”.

In other words, it is a lucrative offer and shareholders should not hold their breaths waiting for a better deal.