Fortitude confirms majority stake in Australia’s | Australian Markets

Australian non-public markets investor Fortitude Investment Partners has secured a majority stake in Australia’s largest unbiased self-managed super fund (SMSF) audit firm, ASF Audits.

Fortitude, a specialist growth capital associate primarily based in Brisbane, was a frontrunner amongst potential consumers of the auditing firm, finishing due diligence for the acquisition earlier final month.

The PE investment firm stated the deal, valued at a reported $31.2 million (or 9.3-times the earlier 12 months EBITDA), “has deepened its footprint in the tech-enabled financial services sector”.

The buy-out consists of a capital injection, which Fortitude has earmarked for a quantity of growth aims, together with building out ASF’s technological capabilities, enhancing its service offering, and supporting “future acquisition-led growth”.

Fortitude managing associate Nick Miller stated the acquisition would assist ASF in “enhancing their customer experience while playing a leading role in the ongoing consolidation of the SMSF assurance industry.”

ASF Audits Managing Director Casey McGrath added that the transaction allows ASF Audits to “embark on a new phase of expansion”.

“Our objective is to sustain our growth trajectory by enhancing our market share both organically and through acquisition. We have strong conviction in the quality of our work, and believe the more SMSFs we audit, the more assurance we can provide to trustees and the SMSF industry itself.”

Headquartered in Adelaide, ASF employs more than 100 workers throughout Adelaide, Melbourne and slightly below 50 offshore, and reviews more than 200 purchasers all through Australia.

The firm, based in 1994, holds a dominant 7% share of the SMSF audit market.

The SMSF sector is anticipated to high $1 trillion in property beneath management this financial yr, representing practically a quarter of the full property held by Australia’s superannuation sector.

Australia counts more than 625,000 SMSF accounts as of the top of calendar yr 2024, up more than 10% in the final 5 years.

Fortitude, a decrease mid-market non-public equity investor centered on Australian and New Zealand corporations, boasts complete investments of more than $350 million, with a “track record” of 23% every year returns after charges.