WT/Merchant JV fund 3 advice practice roll-up

Just days after announcing its joint venture with private equity player, Merchant Wealth Partners, WT Financial has executive a heads of agreement brining together Titan Financial Planning, Darwin Financial & Retirement Services and Wealth Connect.

The roll-up transaction will see the formation of a new entity with the working title of Hubco1 with Titan principal, David McLean, to be appointed as chief executive.

Commenting on the move, WT Financial founder and chief executive, Keith Cullen noted that it represented the first step by the joint venture with Merchant to form WTL & MWP Investco Pty Ltd.

“The capital and strategic resources provided by Investco will help drive expansion while preserving each practice’s entrepreneurial flair,” he said.

Under the new structure, McLean will be chief executive, while Darwin Financial Service’s Andrew Moo and Wealth Connect’s Jeff Stella will remain active advisers.

The announcement said that Investco would appoint the chair.

Merchant partner and executive director of Investco, David Haintz said the joint venture sees a strong future for the three businesses under Hubco.

“By offering a long-term, patient capital model and strategic insights, we enable advice firms to evolve in line with their unique strengths,” he said.

Under the heads of agreement announced to the Australian Securities Exchange (ASX) each of the founding practices will sell their shares or assets into Hubco and receiving a combination of cash and newly issued shares in Hubco.

Investco is expected to provide an initial $3.5 million of capital and hold an initial stake of about 36% in Hubco.