WTL and Investco Launch Dual Hubcos to Accelerate Financial Advice Growth
WT Financial Group and its joint venture Investco have incorporated two new 'Hubcos' to consolidate advisory firms and pursue strategic acquisitions, marking a significant expansion in their financial advice platform.
- Incorporation of Titan Advice Group as first Hubco consolidating three advisory firms
- Acquisition of Rushby Financial valued at $2.8 million, debt-funded by Titan Advice Group
- Formation of second Hubco with Select Advice Group and Newleaf Tailored Financial Solutions valued at $7.8 million
- Investco and WTL hold minority stakes in both Hubcos reflecting capital and advisory contributions
- Strategy focuses on scalable growth, operational efficiencies, and preserving entrepreneurial culture
Strategic Expansion Through Hubcos
WT Financial Group Limited (ASX, WTL) and its 50/50 joint venture with Merchant Wealth Partners, Investco, have taken decisive steps to expand their footprint in the Australian financial advice sector. The recent incorporation of their first Hubco, Titan Advice Group (TAG), marks a key milestone in consolidating multiple advisory practices under a scalable corporate structure designed to foster growth and operational efficiency.
TAG brings together Titan Financial Planning, Darwin Financial & Retirement Services, and Wealth Connect Financial Services as wholly owned subsidiaries. This consolidation is overseen by newly appointed CEO David McLean, with Investco Director David Haintz serving as Chairman. The structure is currently debt free, positioning TAG for strategic acquisitions and organic growth.
Acquisition and Growth Plans
TAG has signed a Heads of Agreement to acquire Rushby Financial, a Queensland-based advisory firm, at a valuation of $2.8 million. The acquisition, expected to settle by October 1, 2025, will be entirely debt funded by TAG. Importantly, Rushby Financial’s principal, Richard Rushby, will remain with the business, ensuring continuity and driving further growth. This acquisition was originated by WTL, which also provides advisory and due diligence services to TAG.
Simultaneously, Investco has agreed to establish a second Hubco comprising Select Advice Group and Newleaf Tailored Financial Solutions. Valued at $7.8 million, this Hubco will have Investco and WTL holding approximately 36% and 6% stakes respectively, with the majority ownership retained by existing shareholders. Eric Bohl, principal of Select, will lead this Hubco as CEO, continuing to advise clients and spearhead growth initiatives.
A Model Built on Partnership and Patient Capital
WTL’s Managing Director Keith Cullen emphasised that these developments reflect the strength of their partnership model. By combining patient capital from Merchant Wealth with WTL’s advisory expertise, the joint venture aims to support ambitious advice practices in scaling and corporatising without losing their entrepreneurial spirit. This approach contrasts with traditional private equity models by focusing on long-term value creation rather than short-term exits.
The Hubcos are envisioned as launchpads for further acquisitions, creating operational efficiencies that enable advisers to thrive in a competitive market. With both Hubcos starting debt free (aside from the planned acquisition financing), the structure provides a solid foundation for sustainable growth.
WTL’s broader network, comprising around 400 privately owned advice practices, stands to benefit from this strategic expansion, potentially reshaping the landscape of financial advice delivery in Australia.
Bottom Line?
WTL and Investco’s Hubco strategy sets the stage for accelerated consolidation and growth in financial advice, but execution risks remain as acquisitions proceed.
Questions in the middle?
- How will the minority ownership stakes impact WTL’s influence and financial returns from the Hubcos?
- What are the integration challenges anticipated with the Rushby Financial acquisition and future deals?
- Will the Hubco model attract additional advisory firms seeking patient capital and operational support?
