WT Financial bets on scaling advice practices

WT Financial (WTL) is betting on scaling advice practices by consolidating its Hubco strategy, under which it is selling its consumer-facing subsidiaries to its first Hubco investment, Titan Advice Group (TAG).

It is divesting from its subsidiaries Vesta Partners and Vesta Wealth Partners to TAG, which helps high-quality advice practices corporatise, access growth capital and build enterprise value.

WT Financial said TAG continues to provide a live demonstration of the ASX-listed financial services firm's strategy to help high-quality advice practices scale.

For the sale, it will receive $450,000 in cash, 426,800 new TAG shares for $1.63 per share as well as $1.5 million vendor finance provided by it to TAG.

WT Financial managing director Keith Cullen said the sale is strategically important for the firm as it moves its consumer-facing businesses to TAG where they can be integrated into a larger, founder-led advice and accounting platform. Meanwhile, WT Financial can retain exposure through direct TAG equity and dividend flow.

"This is exactly how the Hubco strategy is intended to work. WTL helps originate, structure and support these transactions, and in doing so builds direct equity exposure to the growth and value being created within the network," Cullen said.

This the third acquisition by TAG after Rushby Financial and Fusion Partners. WT Financial said the Vesta acquisition further expands TAG's scale, recurring revenue base, accounting and SMSF administration capability, and opportunity for cross-service client engagement.

TAG is now expected to generate annualised revenue of approximately $9.4 million following the acquisition, before further organic growth, pricing initiatives or acquisition activity, WT Financial said. It added it doesn't expect the sales to have a material impact on its operating earnings.

"The company expects the transaction and the broader growth of TAG to be earnings enhancing over time, having regard to the vendor finance return, WTL's increased direct TAG equity position, TAG's dividend flow, and WTL's ongoing network and transaction-related economics," WT Financial said.

Cullen added: "The Hubco strategy is an important part of how WTL is helping modernise the financial advice profession. It gives founder-led practices more options to release capital, fund growth, solve succession, manage retirement and retain exposure to dividend-producing advice businesses in a sector they know deeply."

"Of course, Hubcos are only one part of WTL's broader partnership model. Practices do not need to participate in a Hubco to be central to WTL's network. Our focus remains on supporting high-quality advice practices through our four pillars framework - pricing confidence, capacity building, lead flow, and enterprise value and succession."

Cullen noted rather than being just focused on adviser numbers for their own sake, WT Financial is focused on helping the practices in its network become stronger and better equipped to deliver quality advice at scale.

"That is what we mean when we say we are building the future of quality advice," he added.

Following completion of the transaction, Investco holds approximately 30% of TAG and WTL holds a direct interest of approximately 11%, with the balance held by TAG's founder and practice vendor shareholders.

WT Financial has already progressed its second and third Hubco investments, Select Advice Group and Life Sumo.

It has a number of further Hubco opportunities in the pipeline and is in discussions with multiple practices, both within the WT Financial network and external to the network, regarding participation in the Hubco model, it said.

The Hubco strategy commenced during FY26 and is expected to make a positive contribution to FY26 results, it said. It expects the strategy to contribute more materially from FY27 and beyond as existing Hubcos mature, further acquisitions are completed, and dividend and equity value outcomes compound over time.