AWAG makes second equity investment

The Australian Wealth Advisors Group (AWAG) has announced its second equity partnership scheme (EPS) investment into Beattie Financial and Taxation Services, taking a 20 per cent stake in the financial services company for cash consideration.

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.

AWAG’s newest equity partner, Beattie, is a traditional hybrid financial services company with two office locations – its main business in Bendigo and a growing practice on the Bellarine Peninsula in Victoria – offering both accounting and financial advisory services.

As part of its investment into the firm, AWAG said the group would help grow both office locations, in addition to seeking out further acquisitions for Beattie to be funded by its recently launched AWAG Succession Fund.

“This additional EPS investment is one of many in our pipeline and further announcements will be made in due course,” the group said.

AWAG also announced it has onboarded a new authorised representative (AR) to its wealth management advisory services business, CHPW Financial.

The group said the addition of Sapphire Wealth as an AR is a “strategic initiative” to expand its reach in the area, with the intention of onboarding additional ARs or directly investing into local businesses.

Beattie Financial and Taxation Services and Sapphire Wealth have a combined funds under advice (FUA) of $336 million and funds under management (FUM) of $168 million.

“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,” the group said.

In an ASX announcement earlier this year, AWAG announced its inaugural EPS investment into Victorian advice firm Melican Financial Planning, taking a 20 per cent stake.

“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 at the time.