WTFG/Merchant JV accumulates more advice practices

WT Financial Group has further leveraged its joint venture with Merchant Wealth Partners, launching a second vehicle to finance the acquisition of advice businesses.

The company said it had established a second vehicle (Hubco 2) to acquire two firms, Select Advice Group and Newleaf Tailored Financial Solutions to be foundation practices within the structure.

This follows on from the Joint Venture’s first foray (Hubco 1) which it said it now been incorporated as Titan Advice Group Pty Ltd which brought together Titan Financial Planning, Darwin Financial & Retirement Services and Wealth Connect Financial Services.

It said that the new structure had now executive a heads of agreement to acquire 100% of Queensland-based financial advice firm Rushby Financial at a valuation of $2.8 million, noting that the vehicle is targeting further acquisitions.

Commenting on the progress of the JV, WT Financial managing director, Keith Cullen said the partnerships represented landmark steps.

“They underscore WTL’s position at the centre of a high-growth investment platform and reflect our ability to identify and originate high-quality opportunities and help oversee their integration,” Cullens aid.

“Through Investco, we’re building a scalable platform, with each Hubco becoming a launchpad for further acquisitions and operational efficiencies that will enable advisers to thrive,” he said.

Cullen said the strength of the model was in partnering with ambitious advice practices, providing them with patient capital in partnership with Merchant Wealth.

“We have a very powerful combination that we believe will deliver exceptional long-term value creation for both the practices we partner and WTL shareholders alike,” he said.