SMSF software firm teams up with managed account provider
One of the major SMSF software firms has made an investment in managed account services provider Philo Capital Advisers and will also provide software to support Philo’s service offerings.
Class has invested $4 million in Philo Capital Advisers, a firm which offers financial advisory groups with growing managed discretionary account (MDA) services.
Class will provide software to support Philo’s service offerings. Philo has developed MDA services for licensees that use BT Panorama, with other investment platforms to be available in the future.
The investment is via convertible notes, with an initial tranche of $1.5 million and a further $2.5 million to be invested by 31 March 2020, subject to Philo meeting performance milestones.
The notes are expected to convert into equity based on a valuation related to Philo’s growth, Class stated.
Class has an option to increase its equity ownership to 100 per cent in the longer term. The Philo senior management team will remain shareholders in Philo over the medium term and will be incentivised to grow the business.
Class strategic alliances director Glenn Poynton said that the partnership with Philo is an important strategic step for Class into the broader wealth management space.
“Class and Philo are well aligned, both delivering highly differentiated services that enable client firms to provide better business and investor outcomes,” Mr Poynton said.
Philo Capital Advisers chief executive Brett Sanders said that his firm has significant experience in helping advice practices design and implement managed account services.
“The investment by, and our collaboration with, Class will significantly accelerate growth to make Philo an even more attractive partner to advice groups, platforms, asset consultants and investment managers,” Mr Sanders said.
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
