Castle Harlan, the New York private equity investment firm, announced today that Champ Private Equity, its Australian affiliate, has invested AUD80m in Centric Wealth, a high-end financ
Castle Harlan, the New York private equity investment firm, announced today that Champ Private Equity, its Australian affiliate, has invested AUD80m in Centric Wealth, a high-end financial adviser in Australia, and acquired a 75 per cent stake in the firm.
Centric, based in Sydney, has approximately AUD5bn in assets under management for clients in Sydney, Melbourne, Brisbane and Canberra. Among the firm’s offerings are financial planning, risk insurance, corporate benefit, lending, accounting, business advisory and family office services.
David Jones, Champ managing director (pictured), says: ‘While the sector may be at a difficult point in the economic cycle, Champ believes the longer term dynamics of the financial planning industry are very attractive. The business is well positioned in current markets, and we expect continued performance underpinned by diversified earnings, strong client retention, recurring income streams and low leverage in client portfolios. We look forward to working with management to ensure the future success of the business.’
Champ Private Equity was formed in 2000 as Castle Harlan Australian Mezzanine Partners by the founders of Champ’s Australian predecessor and Castle Harlan. Champ Private Equity and its predecessor have made more than 60 investments since 1987 in companies operating in Australia and New Zealand.
The combined worldwide funds under the management of Champ Private Equity and Castle Harlan exceed AUD5bn.
Champ funds have acquired and successfully exited from investments in a variety of sectors, including Austar United Communications, the satellite TV broadcaster for most of Australia; Bradken Limited, Australia’s largest foundry for large metal castings, and Penrice Limited, the only producer of soda ash in Australia.