Prime Financial Group has entered into an agreement to acquire 100 per cent ownership of boutique alternative asset manager Altor Capital and its controlled entities.
In an ASX announcement on Monday, it said it intends to acquire Altor’s two core existing fund strategies covering private credit and private equity.
The agreement also entails Altor’s funds management platform covering distribution and administration, opening a pathway to launch new products in the alternative asset space.
Prime’s chairman and managing director, Simon Madder, highlighted how the acquisition melded with the firm’s goal to double group revenue between FY2022 and FY25 to $50 million.
“Our results over the last five years demonstrate that Prime is delivering on our material growth aspirations,” he said.
“The revenue increase, driven by strong organic growth, the recent acquisition of SMSF administration business Intello and now acquisition of alternative asset fund manager Altor, means we are well placed to deliver on our goal of doubling revenue to $50 million in FY25 and then doubling that figure again to $100 million within three to five years of FY25.”
Altor has an annualised revenue of approximately $1.8 million and the team of seven will join Prime’s Brisbane office.
According to Altor director Harley Dalton, the fund manager had found an “optimal long-term partner” in Prime to leverage the alternative asset platform it had 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 for our clients,” he said.
“The transaction is an exciting and important strategic step forward for our clients and employees.”
Under the acquisition, there is an initial consideration of $1.5 million but a purchase price not exceeding $4.2 million payable over three years, subject to achievement of maintainable annual EBITDA of $700,000 during that period.
All consideration, initial, and deferred, will be paid 50 per cent in cash and 50 per cent in Prime share, with completion subject to the fulfilment of closing conditions.