New entrant targets M&A in advisory and fund management markets
Powerhouse Ventures, which has acquired Informed Investor from Sequoia, has stated its desire to make a strategic entry into the financial advisory and funds management space.
Last week, it was announced Powerhouse Ventures would acquire content platform Informed Investor from advice licensee Sequoia for 2 million shares in Powerhouse. Sequoia had previously acquired Informer Investor – as well as ShareCafe and Corporate Connect Research – in April 2022.
In a statement, Powerhouse said: “Upon acquisition, we will seek to refurbish the Informed Investor website to create a professional, high conviction investment communication platform which will leverage off the relationships and scale of the PVL corporate network and solve for clear and concise articulation of investment opportunities.
“Informed Investor, as a part of PVL, will still be able to utilise Sequoia’s existing comprehensive media infrastructure and investor relation solutions under a shared services arrangement on discounted terms. PVL will pivot the content of the website to significantly advance investor engagement in high conviction investment opportunities.”
However, the acquisition is part of a larger plan for the investment company to enter into the financial advisory and fund management space. Prior to this, the firm has been primarily interested in acquiring those businesses that hold intellectual property in science and technology.
This new strategy will see Powerhouse restructure into three parts: a Powerhouse Advisory business with advisory mandates, Aliwa Funds Management and Burleigh Ventures for its existing technology businesses, and it has flagged the acquisition of sub-scale fund managers in the financial year 2025.
The addition of a financial arm will bring in additional capital for investment activity, create a platform to grow fund products, and create a cohesive and aligned platform, it said.
As well as the acquisition of Informed Investor, Powerhouse has announced the acquisition of boutique Brisbane-based fund manager Aliwa Funds Management that has $23 million in funds under management (FUM).
“The acquisition of Aliwa gives Powerhouse a base from which to grow a fund management division. Aliwa has robust fund administration and trustee infrastructure. The existing investment team has key client, deal flow and market relationships as well as a base of $23 million in FUM. The single fund product it manages will be restructured and repositioned into two funds – a listed microcap and an unlisted venture capital fund,” it said.
It has also purchased AFSL entity New River Asset Management, again for 2 million shares in Powerhouse.
“This acquisition will enable Powerhouse corporate group to streamline and internalise costs relating to licence arrangements and obligations. The acquisition will be immediately accretive and enable Powerhouse to expand horizons into potential funds management and advisory activities,” it said.
AUTHOR
Laura Dew
Recommended for you
Global asset manager Janus Henderson generated more than US$2 billion in net inflows during 2024, thanks to its strengthened intermediary channel and M&A activity.
Amid the rising demand for more flexible private equity investment options, LGT Capital Partners has launched a semi-liquid fund for wholesale investors in Australia and New Zealand.
The departure of Gerald Stack from Magellan could lead to redemptions as high as $8 billion, according to Morningstar, given the majority of assets in his infrastructure strategies are held by institutional clients.
Perennial Partners and Dexus have both made senior appointments to their fund management teams as they evolve their businesses.
