AWAG expands wealth management deal with new JV

Founded in 2021, AWAG is made up of a senior team of experienced financial planning professionals, including executive chairman Lee IaFrate, founder of Prime Financial Group and Easton Investments, and Mark Stephen, former chief executive of Lonsdale Financial Group.

In an ASX announcement on 7 August, AWAG shared that it had entered into a wealth management joint venture with OneLedger Group, a Melbourne-based financial services firm.

This partnership saw OneLedger Wealth commence operations this week, the groups explained, with adequate working capital and personnel to provide wealth management services across OneLedger Group through a full suite of products and services.

“This represents an existing new revenue stream for AWAG shareholders.”

In the announcement, the firms said they are both optimistic about the earning potential of the venture, noting the expectation that it will contribute to AWAG’s FY2025–26 net profit before tax, from a non-material investment.

AWAG completed an equity partnership scheme (EPS) with OneLedger Group in May, through which AWAG acquired 20 per cent of the practice and will receive revenue royalty of up to 5 per cent of practice earnings.

However, the group said this new venture investment is standalone from its previous dealings with OneLedger and will operate as a 50 per cent owned joint venture, subsequently participating at the profit line, with AWAG stating it considers this initiative well suited to a 50–50 JV structure.

The ASX announcement said: “On behalf of both boards, we look forward to providing you with positive outcomes as part of regular reporting.”

Looking back at May, the group also announced a material investment into B2B Invest, which was subsequently rebranded as AWAG Portfolio Services (APS).

The firm specialises in delivering tailored investment to independent financial advisers to enable efficient implementation and management of direct and unlisted investment portfolios. APS also provided comprehensive measurement and reporting capabilities to meet advisers’ ongoing portfolio management needs.

In an earlier EPS arrangement last year, the firm took a 20 per cent stake in Melican Financial Planning, a financial planning business in Greensborough, Victoria, for a cash consideration. Part of Melican Partners, it offers retirement planning, estate planning and wealth management services to its clients.

Its EPS model will see AWAG make a 20 per cent investment in a financial services business for cash, scrip or a hybrid cash/scrip option, and receive a royalty payment based on the gross revenue of the business.