Coastal Advice Group partners with US-based private equity firm

Coastal Advice Group said the partnership with Merchant Wealth marks a “monumental step forward” for the firm as it strives to solidify its position as a leader in the financial advice sector.

Merchant Wealth Partners is a private investment partnership, specialising in supporting independent financial services firms globally to enhance their ability to grow and scale.

Per the arrangement, Merchant has taken a non-controlling, minority position in Coastal Advice, providing capital to support the advice firm’s future expansion.

“This partnership will unlock invaluable opportunities for growth and innovation, enhancing the company's ability to attract and retain top talent, invest in cutting-edge technology and foster a supportive and empowering workplace culture,” Coastal Advice said.

“By aligning with Merchant’s global expertise and financial backing, Coastal Advice is poised to further elevate its offerings, ensuring long-term success for clients and stakeholders.”

Additionally, David Haintz, the head of Merchant Wealth Partners’ local subsidiary, Merchant Australia, will join the Coastal Advice board to help shape the future of the firm and continue his four-year relationship with the firm, over which time revenue grew by more than 400 per cent.

Speaking on the announcement, Haintz said he is very excited to continue working with Coastal Advice in a greater capacity to expand the firm further.

“I have known and worked with the Coastal team for a number of years in which time they have undertaken more than 20 M&A transactions,” Haintz said.

“In partnering with Coastal Advice, Merchant has now provided the capital to enable their growth to accelerate.

“Coastal Advice has the vision, the model and the entrepreneurial spirit to want to continue that growth. It’s not just a willingness and desire to do it, but an ability and capacity to do it. We are very excited about our future together.”

Coastal Advice chief executive Daniel Brown said he is pleased to be entering a new phase and strengthening the relationship with Merchant.

“This partnership brings new opportunities for growth, reinforces our commitment to delivering the best client experience and supports our long-term vision of becoming the leading provider of financial advice in Australia,” Brown said.

“We look forward to tapping into Merchant’s industry expertise and expanding our global reach to drive continued success.”

In a joint statement, Brown and Haintz said: “Together, we are poised for an even brighter future, committed to providing exceptional financial advice and a world-class experience for clients.”