Prime Financial Group, an Australian advice, capital, and asset management firm, has agreed to acquire Queensland-based boutique alternative asset manager Altor Capital and its controlled entities.
As part of the deal, Prime Financial will add Altor Capital’s two core existing fund strategies encompassing private equity and private credit. The initial consideration for the deal is A$1.5m ($0.98m).
Besides, a purchase price which is not more than A$4.2m ($2.74m), is payable over three years. This will be contingent on Altor Capital attaining maintainable annual EBITDA of A$0.7m ($0.46m) during the period.
Prime Financial disclosed that the initial and deferred consideration will be divided equally between cash and shares, each comprising 50% of the payment structure.
The advice, capital, and asset management firm intends to fund the transaction from available financing facilities.
Prime Financial chairman and managing director Simon Madder said: “Our goal is to double group revenue between FY22 and FY25 to A$50 million, through organic and inorganic activity, enhancing our capability across Advice, Capital & Asset Management for our Business and Wealth segment clients.”
Upon closing of the deal, a team of seven will join Prime Financial’s Brisbane office.
The transaction is also expected to represent an annualised revenue of about A$1.8m ($1.17m).
Based in Brisbane, Altor Capital facilitates the growth of investors’ wealth by employing investment strategies designed to provide a higher risk-return profile than conventional asset classes.
The firm is said to have developed a funds management platform, covering distribution and administration. The platform enables a capability to introduce new products in the alternative asset management space.
Altor Capital director Harley Dalton said: “In Prime we have found the optimal long-term partner to leverage the alternative asset platform we have built over the last six years.
“Like Prime we share a client-focused culture. The support Prime offers, combined with the autonomy of our investment and distribution teams, will ensure we continue to strive to deliver attractive returns to our clients.”
The finalisation of the transaction is contingent on the fulfilment of closing conditions.
