US PE firm makes new deal backing local advice group

Newcastle-based financial advice practice, Coastal Advice Group, has become the latest to reap the benefits of a partnership with the local subsidiary of US-based private equity, Merchant Investment Management.

Merchant first entered the Australian market in 2022 as Merchant Wealth Partners, with Coastal Advice Group the latest to take up its offering of “growth capital, management resources, strategic advice and opportunities to financial advice and wealth management firms”.

The partnership has seen Merchant purchase a minority, “non-controlling” stake in the financial advice firm, with Head of Merchant Australia, David Haintz, also joining its board.

Daniel Brown, Coastal Advice chief executive, said the deal provides the financial backing needed to grow the group’s personnel, boost its strategy and innovation, expand its technology capabilities and nurture a positive workplace culture.

“We are thrilled to begin this exciting new phase in our journey with Merchant,” he said.

“This partnership brings new opportunities for growth, reinforces our commitment to delivering the best client experience, and supports
our long-term vision of becoming the leading provider of financial advice in Australia. We look forward to tapping into Merchant’s industry expertise and expanding our global reach to drive continued success.”

Haintz has previously consulted with the leadership team at Coastal Advice for four years and assisted in boosting revenue by 400 per cent, according to the advice firm.

“I have known and worked with the Coastal team for a number of years in which time they have undertaken more than 20 M&A transactions,” Haintz said.

“In partnering with Coastal Advice, Merchant has now provided the capital to enable their growth to accelerate.

“Coastal Advice has the vision, the model, and the entrepreneurial spirit to want to continue that growth. It’s not just a willingness and  desire to do it, but an ability and capacity to do it. We are very excited about our future together.”

“Together, we are poised for an even brighter future, committed to providing exceptional financial advice and a world-class experience for
clients,” Brown and Haintz said.

Coastal Advice Group also reassured its clients, employees and other related stakeholders that its day-to-day operations and management will not change as a result of the partnership.