Industry fund among bidders for BTFG

One of Australia’s largest industry superannuation funds is understood to be on the short-list of bidders to acquire BT Financial Group including its major platform asset, BT Panorama.

Westpac placed the BTFG business on the sales block last year and Financial Newswire understands that a major industry fund has made the shortlist of three bidders for the business.

The transaction is being regarded more as a transition than a traditional sale.

The existence of the industry fund bid will surprise many in the financial services industry in circumstances where speculation around buyers for the BTFG business has mainly centred around private equity players such as KKR which was the acquirer of Colonial First State.

It also comes in circumstances where industry pundits have frequently referenced industry funds having grown to take on platform-like characteristics.

The industry fund speculated as being most appropriately positioned to pursue such an acquisition is the Australian Retirement Trust which recently emerged from the merger of Queensland’s Sunsuper and QSuper and is regarded as having a significant presence in the financial advice space.

Financial Newswire sought to question ART chief executive, Bernard Reilly on the issue but received a “no comment” response.

The only other industry fund considered to have the capacity to pursue a bid for BTFG is Australia’s largest industry fund, AustralianSuper, but it is not regarded as having the same retail market focus as ART.

ART has over two million members and has around $200 billion in funds under management. It also has one of the most extensive third-party financial adviser networks.

Any transaction involving BTFG with a major industry superannuation fund would give rise to one of the largest financial services entities in the Australian financial services market.