Australian Unity has agreed to buy Bridgeport Financial Services, the financial advisory unit of Netwealth with $550m in funds under advice.
Bridgeport was set up in 1999 and currently employs nine advisers.
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Netwealth joint managing director Michael Heine said: “While we want to sharpen the focus of our business on delivering exceptional platform, managed account and other fin-tech services, it was fundamental to any transaction that our clients and staff in Bridgeport would be well cared for. It was important that the eventual buyer had the right focus on caring for clients and a strong and trusted position in the market, and we believe we have found such a partner with Australian Unity.”
In 2017, Netwealth flagged plans to offload its financial advice units and instead focus on its platform and managed account solutions.
Australian Unity CEO for Wealth & Capital Markets David Bryant said: “Demand for quality and trusted financial advice is only going to increase in Australia and we are augmenting our advice business in response to growing demand.
“Netwealth is already a key partner of Australian Unity, they deliver a great service to our clients, have worked with us to establish our own managed accounts and this transaction will further enhance our working relationship with them.”
