In an ASX listing on Monday, GDG said the deal, partly funded by a $287.9 million fully underwritten equity raising, positions it as a market leader with over $25 billion in funds under management (FUM).
Evidentia, a key provider of investment management and tailored managed account solutions in Australia, will merge with GDG’s Lonsec Investment Solutions under the name Evidentia Group, further strengthening its position in the rapidly growing managed accounts market – currently valued at over $200 billion and projected to reach $474 billion by 2030.
Post-acquisition, Evidentia’s CEO, Peter Smith, will transition to executive chairman of the expanded managed accounts business and join GDG’s board.
Key management personnel from Evidentia have also opted to roll a portion of their equity into GDG shares, aligning their interests with the company’s future growth.
GDG CEO Grant Hackett OAM highlighted the strategic importance of the acquisition, stating: “I am excited to announce today that Generation Development Group has entered into a binding agreement to acquire 100 per cent of Evidentia. This transaction represents another significant milestone in GDG’s growth strategy, following the successful acquisition of the remaining equity interests in Lonsec in 2024.”
Hackett continued: “Evidentia’s boutique tailored managed account solutions, client communications expertise and financial advice practice management experience, paired with Lonsec’s enduring heritage of knowledge, broad managed account offering and strength in research will deliver a more complete and scalable offering.
“This will provide financial advisers and their clients with an even stronger value proposition, access to deeper insights, more extensive investment solutions and an integrated service experience that ultimately supports better outcomes for both financial advisers and clients.”
“This transaction will be a continuation of the best-in-class services that both Lonsec and Evidentia have to offer.”
GDG also clarified that there will be no impact to financial advisers and clients as a result of the restructuring, with business as usual and no changes to the leading client service models in place.
As part of GDG’s broader business realignment, the group will operate three distinct businesses: Generation Life, Lonsec Research and Ratings and Evidentia Group, which will be formed through the merger of the Evidentia and Lonsec Investment Solutions businesses.
Lorraine Robinson, who was previously executive director of Lonsec Research, will now lead Lonsec Research and Ratings, which will operate as an independent business, with the Lonsec brands, including SuperRatings and iRate, aligning under its umbrella.
Moreover, Amanda Smerdon has been appointed to work alongside Grant Hackett to help lead the group’s transformation. As part of her role, she will work alongside key executives to oversee the separation of the newly formed Evidentia Group and Lonsec Research and Ratings businesses, to transition shared services in a phased approach.
