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The ASX-listed aggregator has taken minority holdings in two brokerages as part of its first investments in member groups.
Aggregation group Australian Finance Group Limited (AFG) has made two equity investments in broking businesses, acquiring minority holdings in Melbourne-headquartered Empower Wealth Group and Western Australia-based brokerage, Lifespan Mortgage Services.
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As first announced last year, the aggregator has begun a new program of direct investments in "successful growth-oriented brokerages" whereby it takes a non-controlling equity position in the business.
The investment program aims to provide brokerages with "surety of funding" and, should it be required, additional expertise to support business growth. They are also designed to be "broad and flexible", allowing AFG to support a range of broker ambitions.
So far, AFG has reportedly deployed over $6 million in capital.
Speaking of the first two investments, AFG CEO David Bailey explained: “We are working with Empower Wealth and Lifespan Mortgage Services at a time when they evolve into the next stage of their business growth...
“The investments completed to date are an exemplary demonstration of the value of this program. Both businesses are highly successful and ambitious but were looking for different support from an investment partner – Empower Wealth to support its next stage of growth and Lifespan to enable a strong succession planning solution,” Bailey said.
Empower Wealth managing director Ben Kingsley welcomed the investment, stating: “AFG has been the leader in the broker space for over 30 years and has been our longstanding aggregator for over 17 of them.
"This investment represents an acknowledgment of our growth and maturity as a leading financial and property services business in Australia. "
Kingsley said that the aggregator's investment in "smart tech and new client solutions" dovetails with Empower Wealth's tech and platform roll out, which he said would "best serve growing demand in the market".
"Strategically, it opens numerous opportunities to enhance our services, expand our reach, and help more Australians achieve financial peace.
“This partnership sets a strong foundation for a successful 2025, and beyond. I’m excited about what we can achieve together in this next chapter of our collective journey."
Similarly, the director of Lifespan Mortgage Services, David Moore, said: “AFG’s investment in Lifespan has enabled us to restructure ownership at a time when one of our founders was nearing retirement. This move means our team of leading WA mortgage brokers can confidently continue supporting our customers’ needs and financial goals for years to come.
“Our relationship with AFG has always been built on mutual respect and a shared commitment to excellence," he continued.
"As longstanding members, we are excited to take our partnership to the next level. This will not only enhance our collective capabilities but also open new doors for innovation and growth.
“We are confident that this partnership will bring tremendous value to both parties. We are excited for the next chapter and the opportunities it will bring.”
AFG’s Broker Investments program was announced in November 2024 after brokers reportedly told the aggregator they were looking for access to investment and capital tailored to support the individual needs of their businesses.
Bailey commented: “The program is centred on a sustainable and disciplined investment approach, with the team engaging with our brokers to help them understand if the program suits their needs.”
“Opportunities for brokers will only increase as the value and importance of the broker channel continues to grow,” ,” he said.
“Our dedicated Broker Investments team is actively engaged in discussions with a number of our broker partners across Australia as the program continues to build momentum,” Bailey concluded.
[Related: AFG to acquire equity stakes in broker businesses]
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