Financial services firm Wingate Group could divest its holdings in Everest Financial Group if it fails to oust the management team of the embattled investment manager, according to Wingate Group chief executive Farrel Meltzer.
In March, Wingate Group called for the shareholders of Everest to remove the firm's board.
"The board has demonstrated poor judgment in regard to remuneration policy, a lack of respect for sound corporate governance and reliance on a business model that needs to change in the context of a significantly altered environment post the GFC (global financial crisis)," Meltzer said at the time.
Speaking to Investor Weekly ahead of Everest's annual general meeting later this month, Meltzer flagged further plans regarding the firm's investment in Everest.
The firm has a 19.9 per cent stake in Everest. The other major shareholder in Everest is Blann Investments.
Although Blann Investments had previously signalled its intentions to support Wingate's position, Meltzer said it was likely Blann Investments would now back Everest's current management team
"Our investment in Everest was originally a long-term investment, however, we may be looking to divest from our investment in Everest if the board fails to reach an agreement to remove the current management, "he said.
"There is always the possibility of simply winding back the group and giving back the capital to investors."
In regard to its own operations, Wingate has plans to expand its three businesses: property finance, funds management and advisory services.
The firm advised on the recent deal to sell a majority stake in local franchise business The Boost Investment Group (owners of the Boost Juice business) to United States-based private equity firm The Riverside Company.
The firm's funds management business, Wingate Asset Management, is currently in discussions with asset consultants and research houses.
The funds management business has a joint venture with Australian Unity Investments.
"Retail investors can invest in our funds through Australian Unity Investments. We are, however, looking to get the support of platforms," Meltzer said.
"Once we receive ratings on our funds we will be able to get platform listings. We are also working with asset consultants as we look to get support from institutional investors."
