AWAG Invests $990K and $200K for 15% and 20% Stakes with 4-5% Royalties
The Australian Wealth Advisors Group has deepened its Equity Partnership Scheme with strategic stakes in Oneledger and B2B Invest, setting up royalty revenue streams that align with its expansion in financial services.
- AWAG acquires 15% stake in Oneledger for $990,000 with 4% revenue royalty
- 20% stake secured in B2B Invest (AWAG Portfolio Services) for $200,000 with 5% royalty starting FY26
- Investments are non-controlling interests, reflecting EPS strategy
- Royalties provide recurring income linked to top-line revenue
- Potential for expanded financial planning and wealth management services
AWAG Advances Equity Partnership Scheme
The Australian Wealth Advisors Group Limited (AWAG) has provided an update on its ongoing strategy to build strategic stakes in financial services firms through its Equity Partnership Scheme (EPS). This latest announcement reveals two key investments: a 15% non-controlling interest in Oneledger Group and a 20% stake in B2B Invest, soon to be rebranded as AWAG Portfolio Services Pty Ltd.
Details of the Investments
AWAG’s $990,000 investment in Oneledger, a financial services group based in Port Melbourne, grants it a 4% royalty on the firm’s top-line revenue, effective immediately. Oneledger, established in 2013, operates across accounting, finance, and insurance sectors. Meanwhile, the $200,000 investment in B2B Invest secures a 5% royalty on revenue starting in the 2026 financial year, reflecting a slightly higher royalty rate for a smaller stake.
Strategic Implications and Future Opportunities
These investments are structured as non-controlling interests, meaning AWAG does not hold board or management roles but benefits from royalty income tied directly to revenue performance. This approach aligns with AWAG’s broader strategy to generate recurring income streams while expanding its footprint in financial planning, insurance, mortgage brokering, and accounting sectors.
In addition, AWAG sees potential for collaboration with both Oneledger and APS to broaden client offerings, particularly in financial planning and wealth management services. While specifics remain under wraps, these partnerships could enhance AWAG’s service ecosystem and competitive positioning.
Navigating the Financial Services Landscape
AWAG’s move reflects a calculated approach to participate in the rationalisation of Australia’s financial services and wealth management sectors. By acquiring minority stakes with royalty arrangements, AWAG mitigates operational risks while positioning itself to benefit from sector growth and consolidation trends.
Executive Chairman Lee Iafrate emphasises the company’s commitment to due diligence and compliance in onboarding EPS investments, ensuring a seamless integration process. This disciplined approach may underpin investor confidence as AWAG continues to execute its strategic vision.
Bottom Line?
AWAG’s EPS investments signal a steady march toward diversified royalty income and expanded financial services reach.
Questions in the middle?
- How will these royalty streams impact AWAG’s overall earnings in the near term?
- What specific collaborative services might emerge from partnerships with Oneledger and APS?
- Could AWAG pursue controlling stakes or board positions in future EPS investments?
