ASX-listed Cashwerkz will pay $3 million in cash plus performance rights to buy a 25% stake in a boutique, as it also looks to rename the entire group.
Tactical Global Management has been running since 1997 and provides tailored overlay solutions for single and multi-asset class investments.
It has $29 billion in funds under management, 33 client portfolios and positive earnings (with current NPAT below $2 billion).
One of Tactical's clients is fixed income boutique Fortlake Asset Management started by ex-UBS manager Chris Baylis in which Cashwerkz is an equity investor.
|Sponsored by Charter Hall Group|
The Golden Rules of Commercial Property Investment
Cashwerkz is looking to pay TGM $3 million in cash, plus 16.5 million CWZ performance rights subject to hurdles. At current share price of 33 cents per share, the rights amount to an extra $4.95 million for TGM.
The first of these hurdles is a successful capital raise, when TGM becomes eligible for up to 1.5 million rights.
The next two are pegged to TGM hitting $2 million and then $4 million in NPAT, which will make it eligible for five million rights each.
Lastly, TGM will get another five million rights, when its FUM crosses $50 billion and CWZ's share price hits $0.50 per share.
Cashwerkz is funding the purchase via a $14 million equity raise.
It will spend the remaining on strengthening its responsible entity's NTA reserves, hiring about three distribution staff, and for additional settlement capacity.
Lastly, Cashwerkz will also seek shareholder approval at its annual general meeting to rebrand to Income Asset Management Group, as an increasing share of its group revenue comes from bonds-related income instead of the traditional business of cash deposits.
"With the addition of the strategic investment announced with this raise, we have aligned our business in the asset class of our choice - income asset management. We expect to be best-known brand for income investing in Australia," CWZ said in its presentation for the raise.