AWAG’s New Joint Venture Starts with $240 Million Funds Under Management
The Australian Wealth Advisors Group has launched a profitable joint venture with CHN Partners, leveraging an established accounting practice to boost its wealth management footprint.
- Formation of 50/50 joint venture CHN Wealth Pty Ltd
- Initial funds under management of approximately $240 million
- Profitable and cashflow positive from inception
- Partnership leverages CHN Partners’ established Melbourne client base
- AWAG pursuing further similar transactions and due diligence
Strategic Partnership Formation
The Australian Wealth Advisors Group Ltd (AWAG) has announced a significant strategic investment through the formation of CHN Wealth Pty Ltd, a 50/50 joint venture with CHN Partners Pty Ltd. This move marks AWAG’s tenth completed transaction since its inception and underscores its commitment to expanding its wealth management services by partnering with established accounting practices.
Leveraging Established Client Networks
CHN Partners, a well-established Chartered Accountant practice with over 30 years of operation and a strong presence in Melbourne’s Eastern Suburbs, brings a staff of approximately 20 and a loyal client base to the venture. By integrating this existing business into the joint venture from the outset, AWAG gains immediate access to a profitable and cashflow positive operation with initial funds under management (FUMA) of around $240 million.
Leadership and Operational Support
Rob Gould has been appointed as the key executive of CHN Wealth, steering the joint venture’s growth and operational strategy. Both AWAG and CHN Partners contribute capital, licensing, administrative support, and business referrals, creating a solid foundation for sustainable growth. This approach reflects AWAG’s broader strategy of partnering with accounting firms to develop wealth management services that leverage existing client relationships.
Growth Through Strategic Acquisitions
AWAG is actively conducting due diligence on similar opportunities, including boutique Australian Financial Services License (AFSL) holders and other business investments. These transactions are designed to be capital efficient, focusing on the quality and integrity of people involved rather than heavy capital outlays. This ongoing build-out of AWAG’s investment portfolio is expected to underpin growth in its net profit before tax, signaling a disciplined yet ambitious expansion strategy.
Positioning for Sector Rationalisation
AWAG’s directors, experienced financial services professionals with significant ownership stakes, have expressed intentions to participate in the rationalisation of the Australian financial services and wealth management sectors through corporate activism. The CHN Wealth joint venture exemplifies this approach, combining operational expertise with strategic partnerships to strengthen market positioning.
Bottom Line?
AWAG’s joint venture with CHN Partners sets a profitable precedent as it eyes further strategic expansions in wealth management.
Questions in the middle?
- What are the detailed financial terms and valuation of the CHN Wealth joint venture?
- Which other boutique AFSL licensees is AWAG targeting for future acquisitions?
- How will these joint ventures impact AWAG’s overall profitability and market share in the medium term?
