Diversa adds another string to wealth management bow
Listed wealth management company Diversa has continued its recent expansionary activity by taking a stake in Michael Birch’s boutique funds management business.
Birch established specialist Australian equities manager Huon Capital this year, having previously worked for MMC Asset Management, Wallace Funds Management, UBS Warburg Australia and Macquarie Bank.
Diversa has acquired a 20 per cent ownership stake in Huon Capital, with an outlook to increase its ownership to as much as 40 per cent over the next two years.
The consideration is for an initial payment of 500,000 ordinary shares in Diversa and up to a further 1.5 million shares if performance hurdles are met over the next three years, the group’s statement to the Australian Securities Exchange said. Diversa shares were last trading around the 10 cent mark.
Huon Capital has around $40 million of funds under management in its Australian Share Fund and Value Growth Trust, with the funds being established in 2000 and 2003 respectively.
Diversa said the acquisition complements its acquisition of Super Promoters business in March and the MARF business in September this year. The group said it is working to develop an “emerging wealth management company” and will “continue to examine opportunities to expand its wealth management offerings and capabilities” next year.
The agreement with Huon Capital is subject to a number of conditions.
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