AWAG completes inaugural equity investment into advice firm

In an ASX announcement, AWAG shared that it has taken a 20 per cent stake in Melican Financial Planning, a financial advice, SMSF, and accounting firm located in Greensborough, Victoria, for cash consideration.

AWAG said this investment is “one of many in our pipeline” and further announcements are expected.

Through AWAG’s EPS model, the firm makes a 20 per cent investment in a financial services business, providing accounting, financial advice, insurance, and/or mortgage broking services for cash, script, or a hybrid of both. In return, AWAG receives royalty payment based on the gross revenue of the business.

“The Melican transaction has now established our EPS onboarding process and established a solid foundation for the model, covering due diligence, legal, compliance, and general administration for future transactions,” AWAG said.

AWAG explained that the investment partnership scheme and equity participation into advisory businesses is an essential part of its overall business strategy in “taking a consultative equity position in successful, highly profitable, and sustainable financial services businesses on a national scale”.

AWAG also announced that Murdoch Private Wealth, a Melbourne-based boutique financial advice firm, has become an authorised representative of its wealth management advisory business, CHPW Financial.

“We welcome both firms and look forward to their overall success and contribution to AWAG,” it said.

“AWAG has an active pipeline of both EPS investments as well as the planned onboarding of authorised representatives into our wealth management advisory services business, CHPW Financial.

“As the advice market continues to see significant change and consolidation, we are systematically growing our operations profitably and establishing AWAG as a key participant in this sector.”

Founded in 2021, AWAG specialises in wealth advisory and merger and acquisition activity within the financial services sector and is made up of two subsidiaries including a dealer group, CHPW Financial, and a boutique investment management firm, Armytage.

Following the completion of these transactions, AWAG’s funds under administration and management exceeds $2.1 billion.