Kudu continues Australian expansion with fresh investment

Kudu Investment Management has acquired a minority stake in a Sydney-based financial advisory business mere days after an identical transaction with Drummond Capital Partners.

Australian Financial Planning Group (AFPG) has secured a minority investment from Kudu with undisclosed fee and terms, where the firm will use the proceeds to support its continued growth, while maintaining its independent ownership structure.

The funding will expand AFPG's adviser base and pursuit of strategic acquisitions and will continue to be led by its founder Matt Carter and management team, with no changes to its day-to-day operations.

Founded in 2001, AFPG has a team of 30 advisers, manages in excess of $3 billion, and offers a suite of financial planning, lending and accounting services.

Commenting, Carter said the investment will support the firm's focus on expanding its footprint and service.

"Kudu's minority investment allows us to retain control of our business while providing the capital and strategic support to accelerate our growth, particularly through acquisitions. We're excited about the opportunities ahead," Carter said.

"We founded AFPG with a commitment to delivering high-quality advice to our clients, and that will not change."

Meanwhile, Kudu co-chief investment officer and partner Chris Shin explained the appeal of the transaction and why Australia continues to position itself as a prime opportunity for wealth management expansion.

"Australia represents a compelling market for wealth management, supported by strong secular growth drivers and increasing demand for high-quality financial advice," Shin said.

"AFPG has built an impressive business with a clear vision and strong leadership. We are delighted to partner with Matt and his team as they continue to expand their business."

New York-based Kudu has made investments in 34 asset and wealth managers in the US, Canada, UK, Europe and Australia as at March 31.