Why US private equity firms are so hungry for Australian wealth assets
The financial advice industry was decimated following the Royal Commission but now Bain, KKR, CC Capital, Oaktree and TA Associates are hoovering up what banks thought were too difficult to manage.
Australia’s financial advice and wealth management industry used to be heavily controlled by the big four banks. Now, the large chunks of the industry have been scooped up by US private equity firms. And with the latest entrant openly tipping industry consolidation in the industry, there could be more deals to come.
Bain Capital became the latest American buyout firm to establish a foothold in the Australian wealth industry after this week’s deal to acquire Perpetual’s private wealth arm for $550 million. The sale followed a drawn out process that initially involved KKR, and later Oaktree Capital Management.
It follows New York-based CC Capital, which acquired Insignia in a deal expected to close this year, KKR, which has majority owned CFS since 2021, TA Associates, which made a strategic investment in Viridian Financial Group last year and Oaktree, which acquired a stake in AZ NGA in 2024.
The retreat by the big banks it not difficult to understand. Speaking to Capital Brief, Padua Solutions Wealth Data manager Colin Williams said after the Hayne Royal Commission in 2019 — the big four banks, AMP and Insignia Financial — “found it all too hard” and exited wealth management.
