Equity Story Posts 17.31% Fund Outperformance, Secures $500K Strategic Investment
Equity Story Group Ltd reported a robust 56% revenue increase in the March 2025 quarter, driven by strong fund performance and membership growth, alongside a strategic investment and plans to acquire Baker Young Limited.
- 56% quarter-on-quarter revenue growth
- 17.31% outperformance of Equity Story Growth Fund over 12 months
- $500,000 strategic investment by Capital Haus for 11.6% stake
- Binding agreement to acquire Baker Young Limited to expand wealth management
- 18% reduction in operating expenses enhancing profitability
Strong Revenue and Fund Performance
Equity Story Group Ltd (ASX: EQS) has delivered an impressive 56% increase in revenue for the March 2025 quarter, a leap largely attributed to the robust performance of its proprietary Equity Story Growth Fund and a resurgence in membership subscriptions. The fund’s unique CTM methodology, blending fundamental and technical analysis, has propelled it to outperform the Barclay Hedge Fund benchmark by 17.31% over the past 12 months, underscoring the firm’s investment acumen in a volatile market environment.
Strategic Investment and Leadership Shift
February saw Capital Haus Pty Ltd inject $500,000 for an 11.6% stake in Equity Story, marking a pivotal moment in the company’s growth trajectory. This capital infusion not only strengthens the balance sheet but also brings Brendan Gow, founder of Capital Haus, into the fold as Executive Chairman. His expertise in high-net-worth financial services is expected to accelerate Equity Story’s expansion plans, particularly in wealth management.
Acquisition to Scale Wealth Advisory Services
Equity Story has initiated a binding Heads of Agreement to acquire Baker Young Limited, a move designed to scale its wealth advisory services nationally. This acquisition, pending due diligence and regulatory approval, signals the company’s strategic pivot towards broadening its service offerings and capitalising on the growing demand for comprehensive wealth management solutions. The deal is targeted for completion by the end of May 2025.
Operational Efficiency and Financial Health
Alongside growth, Equity Story has focused on cost discipline, achieving an 18% reduction in staff, corporate, and administrative expenses. Cash receipts rose to $304,000 for the quarter, supported by membership and fund performance fees. The company ended the quarter with $595,000 in cash and access to $1.03 million in loan facilities, positioning it well to support ongoing operations and strategic initiatives.
Looking Ahead
With a strengthened leadership team, a strategic investor onboard, and a clear plan to expand its wealth management footprint, Equity Story appears poised for sustained growth. The company’s ability to navigate market volatility, leverage its fund’s strong performance, and successfully integrate Baker Young will be critical factors to watch in the coming months.
Bottom Line?
Equity Story’s momentum builds as it prepares to scale nationally—next steps hinge on acquisition success and market conditions.
Questions in the middle?
- Will the Baker Young acquisition close on schedule and deliver expected synergies?
- How will Brendan Gow’s leadership influence Equity Story’s strategic direction?
- Can the Equity Story Growth Fund maintain its strong outperformance amid market volatility?
