The ASX-listed aggregator has now taken minority equity positions in five brokerages.
Australian Finance Group (AFG) has announced the latest venture in its Broker Investments program, with the ASX-listed aggregator acquiring a 35 per cent stake in Melbourne-based boutique broking business TS Finance Broking Pty Ltd.
Established in 2013, TS Finance Broking Pty Ltd specialises in residential and commercial finance and has developed a name as a pre-eminent boutique brokerage with a “sterling reputation for customer service”, according to the aggregator.
AFG’s investment will enable the brokerage to accelerate its growth plans, with TS Finance Broking founder Tim Sheehan adding that it will unlock new opportunities.
“We’ve focused on building long-term relationships and maintaining deep client knowledge to manage enquiries effectively and stay proactive throughout the life of each loan,” he said.
“AFG’s backing will help us accelerate growth while preserving the personalised, relationship-centric approach fundamental to our success.”
David Bailey, AFG CEO, said the group was delighted to back the brokerage.
“TS Finance Broking is a high-performing brokerage with a proven business model built on personalised financial advice and long-term customer relationships,” he said.
“We see significant potential for further growth and are excited to support their next phase of expansion.”
Investing in growth
The investment in Network Finance is the fifth the ASX-listed aggregator has made under its broker investments program, which was launched last year.
Most recently, AFG acquired a 40 per cent stake in Brisbane-based asset finance brokerage Network Finance, joining Melbourne’s Empower Wealth Group, Perth’s Lifespan Mortgage Services, and Sydney’s Loan Path Finance as participating brokerages.
The aggregator also 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.
When the program was announced, 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 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 takes minority stake in asset finance brokerage]
