CEO warns global capital surge in wealth management won’t last

InvestorDaily

Speaking to InvestorDaily, Paul Barrett, CEO of AZ NGA, highlighted the clear influx of global institutions into the Australian wealth management sector, but said this surge of investment will eventually dry up. Earlier this month, AZ Next Generation Advisory (AZ NGA) announced it had secured a $345 million senior secured credit facility, led by global investment giant Barings, to support its growth strategy, following a $240 million investment from Oaktree Capital Management last year, which valued the company at $690 million. “When we raised capital last year with Oaktree, there were a number of other players very keen to enter the sector,” Barrett said.

“And that’s what’s so hot. You only need to look at what’s happening in the Insignia situation to see that there’s quite a lot of demand by foreign investment companies for Australian wealth management assets. And I think that cycle will continue for a little while longer, but it won’t last forever.” AZ NGA, he said, plans to fully leverage this opportunity while it lasts. “Now is the time to be executing your growth plan,” Barrett said. “Business is cyclical … And right now, [wealth management] is a very hot sector, and it probably won’t be this hot again in our lifetimes.

The rest of this article can be found at investordaily.com.au.