Listed wealth management firm IOOF Holdings has purchased a minority stake in Patron Financial Advice for an undisclosed sum.
The investment in Patron showed IOOF's strategic desire to boost its existing distribution network and partner with fast growing and profitable advice businesses, IOOF's general manager of distribution Renato Mota said.
"IOOF sees this as a win-win scenario for both parties. A strong relationship already exists between IOOF and Patron, so it makes strategic and commercial sense to further cement this long-term relationship," he said.
Mota confirmed Patron will keep its operational independence and that the company's existing management team and board of directors would remain in place.
Patron general manager Rob McCann said the company welcomed IOOF as a strategic investor.
"The IOOF partnership will enable us to accelerate our growth while offering our clients the best possible quality service, investment and life products and research," he said.
"IOOF have supported Patron since the day our AFSL (Australian Financial Services Licence) was approved, and we are delighted to now have IOOF as an investor in our business."
The transaction is due to be completed in early May.
Established in 2007, Patron currently has around 50 advisers and is looking to grow its network over the next three years, McCann said.
