Bankrolled MainstreamBPO in acquisition
Backed by specific funding provided by Investec Bank, business process outsourcing group MainstreamBPO has acquired a group specialising in providing back-office processing to superannuation funds.
MainstreamBPO said it had used the first tranche of the $10 million provided by Investec to acquire Group Benefits.
It said this fitted with a long-term strategy to build a business focused on providing back-office administration services to the financial services sector.
Investec’s Mark Joffe and Brad Hill said they supported MainstreamBPO’s strategy of targeting these high-value niche outsourcing markets.
“We are confident we are backing experts in business process outsourcing who have an excellent track record in establishing and operating back-office administration businesses,” Joffe said.
Hill said that MainstreamBPO was well known in the financial services industry and, given the buoyancy of the economy and flow-through to the funds management industry, had significant opportunities to grow its business.
MainstreamBPO chief executive Byram Johnston said the company continued to grow its business through client acquisition, business acquisition and carve-out opportunities.
“We continue to evaluate opportunities to extend our reach past the businesses we now have in fund administration and superannuation administration,” he said.
“These opportunities could include registry services and mortgage administration.”
AUTHOR
Mike Taylor
Recommended for you
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
New Zealand’s financial regulator is following the footsteps of its Tasman neighbours and proposing to conduct a review on improving the accessibility of financial advice and advice business models.
