Perth-based advisory group Sentry Financial Group has agreed to form a strategic partnership with ING Australia.
Under the arrangement ING has purchased an option to buy a maximum 37.5 per cent share in Sentry.
The deal will provide the dealer group with funding to achieve its expansion goals for 2008 and will also give ING with a seat on the Sentry board.
Sentry has flagged its intentions to pursue an aggressive growth path in the immediate future and will be looking to ING for support to achieve this aim.
“We can add value in terms of management capabilities, we have capital resources we can apply, and we have a considerable amount of processes and compliance resources we can offer,” ING Australia executive director for aligned distribution groups Ross Bowden said.
Sentry has 81 advisers working across several activities including finance broking and insurance broking. It also handles over $1.1 million in funds under management.
The fact Sentry is based on the West coast added to its appeal as a strategic partner according to Bowden.
“Traditionally Eastern seaboard companies have a lesser footprint in the West and it’s a way of expanding our footprint over there. At the same time they’re interested in growing their national footprint so from that point of view it makes it a good fit,” he said.
“From our point of view distribution is critical and we will continue to be on the lookout for key strategic partnerships like this in dealer groups we believe are well managed and will add value not only to themselves but to ING,” Bowden added.
