After the Hayne Royal Commission many advisers decided to steer away from large dealer groups in favour of becoming self-licensed. In the last six months, however, that trend has taken an abrupt turn.
While known for being the flagbearer for financial product providers, the Financial Services Council is now making serious inroads into the financial advice sector.
Freehold and Alceon merging businesses, positioned for growth
Alceon Group, led by respected industry veteran Trevor Loewensohn, announced this week that it is formally combining its business with Freehold Investment Management. The consolidation comes after Alceon acquired a 40 per cent stake in Freehold around 18 months ago.
Established in 2010, Alceon Group has invested over $4 billion in capital for its diverse range of professional clients. These investments have spanned the asset class spectrum ranging from real estate, to credit, private equity, and more opportunistic liquid market strategies. The group has made headlines in recent months for its acquisitive approach, bidding for the likes of Think Childcare, in what stands out as a unique market environment for private investors.
The combination with Freehold bolsters its already significant real estate and credit division, with the deal expected to take the total assets under management to $2.5 billion. Freehold’s focus is on ‘delivering sustainable returns from tangible assets’ which include large-scale property, infrastructure lending and portfolio management. The group operates across both listed and unlisted markets, suggesting that over the long-term their performance converges, but in the short-term pricing inefficiencies offer opportunity.
Under the agreement, the Freehold Australian Property Fund, which invests 50 per cent of client assets into ASX-listed property and infrastructure assets and the remainder in unlisted property, will remain under the Freehold banner with all remaining debt strategies to be consolidated under the Alceon name.
Grant Atchison, managing director of Freehold, has been appointed head of real estate funds management of the combined group, and will also assume the responsibility for management and operation of the Alceon Real Estate Senior Debt Fund. His colleague, Omar Khan, currently portfolio manager of the Debt Income Fund, will be given the responsibility of attracting ‘wholesale’ or family office and financial advisery capital to the combined business.
Commenting on the announcement, Loewensohn and Atchison said, “We are very excited about the combination of our businesses. We have had an excellent working relationship for many years, which has been further developed over the past 18 months, and combining the businesses provides us with a wonderful opportunity to further expand and enhance our investment capabilities and solutions for our clients”.
This looks to be another positive important step in the growth of home-grown non-bank lending and alternative asset sector in Australia.
