Grow Super has hired Qantas Super's chief operating officer, as it looks to divest its superannuation business and pivot towards administration services.
Grow Super is currently looking for a buyer for its $39 million (as at June end) of superannuation assets.
"We are having a couple of active discussions with other superannuation funds and expect to finalise the divestment by early 2020 through a successor fund transfer," Grow Super chief executive Josh Wilson told Financial Standard.
At the same time, for the last 12 months, Grow Super has been running pilots for an administration services platform, whose launch it announced in July.
The platform, which will be Grow Super's primary business, will provide an outsourced solution for superannuation funds for functions such as APRA reporting, taxation, financial accounting and member and employer servicing.
Wilson has hired Qantas Super's chief operating officer Peter Savage to head the new administration services business.
"We are talking to a number of clients, both industry and retail funds...It's a whole difference scale question between a superannuation fund and an administration business," Wilson said.
Wilson said the new business' clients will "not necessarily" be small funds and there is no FUM limit to how big a client Grow will be able to handle.
Grow Super's own administration services for its superannuation fund were handled by OneVue.
But Wilson said one condition of the divestment of its superannuation assets will be that the new fund will have to use Grow Super's administration platform for those assets.
The company will employ 80 people by the end of the year (another high-profile hire earlier this year was Adam Gee from KPMG).
Savage started at Grow Super's offices last week.
"He has a really unique and powerful blend of skills and experience. He has worked on the custody side but also knows the operational requirements and expectations of a trustee from an [administration] service," Wilson said.
Grow Super is owned by institutional investors including CitiGroup, Greenstone, IOOF, an American distributed ledger company and family offices.