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The $90 million takeover is expected to grow MA Financial’s AUM to $12 billion.
Asset manager MA Financial has bought specialist real estate investment management firm IP Generation (IPG) for $90.4 million in a move that will bolster the former’s assets under management to more than $12 billion.
The $90.4 million purchase price represents a 7.9 times multiple on normalised EBITDA and includes an $80.0 million upfront payment in MAF shares and $10.4 million in deferred consideration payable half in cash and half in MAF shares in 12 months’ time.
MA Financial said the acquisition would grow the scale and breadth of its real estate asset management business, with post-purchase real estate AUM increasing to around $8 billion.
After the acquisition, Melbourne-based IPG will be integrated into MA Financial’s real estate asset management platform.
IPG founder and CEO Chris Lock will become head of core real estate at MA Financial and be responsible for the core real estate business and its funds. Lock will be supported by long-time IPG COO Ingrid van Dijken.
IPG chairman David Blight and director Greg Miles will also join MA Financial’s real estate asset management team in leadership roles, while IPG’s 29 real estate investment professionals will join MA’s real estate asset management business.
The transaction is expected to complete early in the second half of 2025 and be earnings accretive on a full-year pro forma basis.
Established in 2018, IPG manages around $2 billion of retail shopping centre assets across 10 funds that own 14 shopping centres located in NSW, Queensland, Victoria, and Western Australia on behalf of high-net-worth investors.
Julian Biggins, joint CEO of MA Financial, said: “IP Generation has an impressive track-record in securing assets, raising capital and delivering strong returns to its investors.
“Its complementary, high growth real estate funds management platform will give our (MA Financial) real estate asset management business immediate additional scale, expanded and diversified distribution channels and an increased Melbourne presence and investor base.
“This important strategic and complementary acquisition builds scale in our core real estate business at an attractive once in a cycle opportunity in the real estate market. We have a long association with IP Generation and its senior leaders, and strong cultural alignment sharing a founder philosophy, entrepreneurial mindset and investor-led approach.
“The integration of our teams will deliver significant synergies and scale benefits, deepening our real estate platform to around 250 professionals offering a breadth of expertise across origination, investment management, development and property management capabilities.”
Chris Lock, IPG founder and CEO, said: “IP Generation and MA Financial have a strong cultural fit and alignment. We have known the MA Financial team for many years and believe the scale of the combined business enables us to deliver even better opportunities and investment returns to all our clients in the future.”
The decision to buy IPG comes as MA Financial – and its mortgage lending arm MA Money – continues to expand its loan offerings.
MA Money posted loan growth in its financial results for the 12 months to 31 December 2024, closing 2024 with a $2.1 billion loan book, up 155 per cent on a year prior.
The lender – which launched in 2022 after MA Financial acquired the company (when it was formerly known as MKM Capital) – printed its second $500 million RMBS public term issuance in October to help bolster future growth.
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