Ironbark raises $256m from global investment firm

Ironbark Financial has raised $256 million investment from Merchant Wealth Partners, a New York-based investment manager, which provides equity investments to financial services firms.

This is Merchant's largest investment outside the US market, joining Ironbark's long-term investor ASX-listed Soul Patts.

Ironbark Financial chief executive Justin Greiner said the investment gives the wealth firm the capital to execute its Australian growth strategy, create liquidity for shareholders and actively pursue a pipeline of acquisitions.

"This partnership is a powerful endorsement of our business and our people. It gives us the long-term strategic backing to meet our ambition to become Australia's trusted financial partner," Ironbark Financial managing director and executive chair Chris Larsen said.

"Merchant's credentials as a long-term, patient investor with global expertise make it an ideal partner for Ironbark. Importantly, we have a strong cultural and strategic alignment, underpinned by a shared long-term outlook, partnership mindset and commitment to supporting founder-led businesses.

"We wanted a shareholder with the desire to collaborate with entrepreneurial founder-led firms, similar to our long-standing relationship with Soul Patts."

Ironbark recently consolidated 15 businesses under a new single brand, Ironbark Financial Group. The parent company operates sub-brands including Ironbark Advice, Ironbark Private Wealth and Ironbark Investment Solutions.

Merchant Wealth Partners executive chair Marc Spilker said: "We partner with exceptional businesses and management teams where we believe our capital, capabilities and global network can help support their long-term ambitions.

"Ironbark has built a differentiated financial services platform of significant scale, with an outstanding leadership team and a clear vision for the future. We look forward to working alongside Chris and the leadership team to build on that foundation and support the next stage of the firm's growth."

Soul Patts also welcomed the addition of Merchant to the business and said it will work alongside Ironbark and Merchant to achieve the firm's strategic goals.

"For close to a decade Soul Patts has supported Ironbark's evolution, and we welcome Merchant joining the business," Soul Patts managing director of principal investments David Scammell said.

"Merchant's ecosystem gives Ironbark access to deeper expertise that will broaden its client offering. Soul Patts remains a committed, long-term partner as Ironbark enters its next stage of growth."

Financial Standard understands Berkshire Global advised Ironbark on the deal.

The transaction is subject to approval by the Foreign Investment Review Board and the Australian Competition and Consumer Commission.