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Berkshire Global Advisors acted as financial advisor to Generation Development Group
  • has acquired a minority interest in
  • Berkshire Global Advisors acted as financial advisor to Generation Development Group

  • Date: September 2020
  • Sector: Investment Management
  • Sub-Sector: Funds Management
  • Region: APAC
  • Seller AUM: $2 Billion
  • Seller Details:
    Lonsec is a leading qualitative research firm providing ratings to fund managers, superannuation funds, advisory groups, and platforms.

    Buyer Details:
    Generation Life is a specialist provider of investment bond product solutions having established Australia’s first truly flexible investment bond product over 15 years ago. GDG is listed on the Australian Stock Exchange.

    Transaction Summary:
    Generation Development Group to acquire a strategic 37% investment in Lonsec Holdings Pty Ltd and the development of a new annuity product – to be funded with an equity raising of up to $35 million

    Generation Development Group (ASX: GDG) (GDG or the Company) to raise up to $35 million via an institutional placement and accelerated non-renounceable entitlement offer.

    $20.1 million will be used to acquire a 37% stake in Lonsec Holdings Pty Ltd (Lonsec) (the Acquisition), a leading qualitative research firm providing ratings to fund managers, superannuation funds, advisory groups, and platforms.

    Up to $10 million will be applied to the development of a new annuity product and the regulatory capital required for this.

    The remainder will be used for general working capital and transaction costs.

    This investment in Lonsec will provide GDG with a highly strategic foothold in an attractive market niche of the financial services and wealth management market.