The ASX-listed aggregator has taken a minority equity position in a Brisbane-based asset finance brokerage, as it continues its broker investments program.
Aggregation group Australian Finance Group Limited (AFG) has made another equity investment in a broking business as part of its broker investments program, acquiring a minority stake in Brisbane-based asset finance brokerage Network Finance.
Established in 1995, Network Finance operates out of offices in Brisbane suburbs Coorparoo and Beenleigh and has been a member of the aggregation group since 2008.
Under the agreement, AFG will acquire a 40 per cent stake in Network Finance, with the brokerage joining Melbourne’s Empower Wealth Group, Perth’s Lifespan Mortgage Services, and Sydney’s Loan Path Finance.
As such, the investment in Network Finance is the fourth the ASX-listed aggregator has made under its broker investments program (which was launched last year), but its first in an asset finance brokerage.
Craig Titmus, Network Finance’s managing director, said AFG’s investment would open new opportunities and accelerate the brokerage’s growth trajectory.
“We’ve earned our reputation in asset finance, but leveraging off our loyal customer base we see enormous potential in residential and commercial lending,” he said.
“Partnering with AFG, an ASX-listed company, gives us access to the capital and expertise needed to unlock that growth.
“With AFG’s backing, we’re positioned to scale rapidly while continuing to deliver the personalised service our customers value.”
David Bailey also commented on the partnership and suggested it provided an opportunity for the companies to collaborate and for Network Finance to solidify its foothold in asset finance and expand into residential and commercial lending.
Bailey also noted the positive response the broker investments program has received so far.
“The four investments to date, including Network Finance, mark just the beginning of our program,” he said.
“Our ambition is to invest in 35 high-calibre groups by 2029.”
Investing for growth
AFG launched its investment program in November 2024, as part of a strategy to expand by utilising its cash reserves to invest in high-growth brokerages.
The aggregator appointed Viknesh (Vik) Sukumaran – formerly general manager of operations and acquisitions at ASX 100-listed insurance intermediary Steadfast Group Limited – as its head of broker investments to lead acquisitions.
At the time, the aggregation group said it had seen strong interest from brokers seeking investment, particularly those focused on succession planning, and revealed that “active discussions” had already begun with interested parties.
Speaking to The Adviser after the most recent investment in Network Finance, Bailey said AFG was focusing its attention on high-calibre, growth-oriented businesses.
“Our focus is on partnering with brokerages that are operationally sound, serious about systems and processes, and ambitious about scaling,” he said.
“The Broker Investments offering has been designed to be both broad and flexible, enabling AFG to cater to the unique needs of different businesses.”
[Related: AFG to acquire equity stakes in broker businesses]
