Genesys funding creates member merger
A Genesys Wealth Advisers’ equity stake has enable two Perth-based member financial planning firms to merge to form a single member firm, Aspire2.
The equity stake in the six-planner Aspire2 brings Genesys’ total equity investments in its member planning firms to $20 million over the past six months.
It has now taken part or full ownership of member firm practices in Toowoomba, Gold Coast, Brisbane, Sydney, Canberra, Melbourne, Adelaide, Perth, Launceston, Bernie and Hobart.
The latest deal, involving a mixture of equity and debt, facilitated a merger between Genesys corporate planning firm Malnfal Prop Ltd and a second Genesys firm, HLM Financial Services, to form Aspire2.
In turn, the deal allowed the principal of HLM, Bruce Langoulant, to begin a “gradual transition” into retirement after 21 years in financial planning.
The chief executive of financial planning at Challenger, Greg Kirk, said the Genesys investment model had once again proved attractive to practices seeking capital to fund succession or growth.
“We’ve developed a model that allows Genesys to provide capital without ceding business control or removing the member firm principal’s entrepreneurial drive. We want to encourage growth and share in it.
“The firms that we have invested in over the years have become our fastest growing and most profitable, which is to the benefit of Genesys and the adviser.”
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