New doors swing open for Clark Finance Group

Five months into its merger with Lydian Finance, Victoria-based independent brokerage Clark Finance Group is brimming with optimism.

Following the mutually beneficial combination, volumes are on the rise and Clark Finance has seen a steady stream of new business coming via Lydian’s network of financial planners.

Lydian gained a $100 million-plus brokerage in the Victorian state when the two businesses combined in January, while Clark Finance strengthened its resolve amid increasingly tough competition in the mortgage finance sector.

Speaking to MPA to take a five-month pulse check, Clark Finance’s founder, chief executive and namesake Vaughan Clark predicted 2025 volumes to be up 20% year on year, with another 50% in year-on-year growth tipped for 2026.

With the partnership with Lydian and the introduction of new financial planner relationships in full swing, “the volumes have really started to kick in,” said Clark. “We're getting some really good partners on board.”

When Lydian acquired Clark Finance’s book for an undisclosed sum, a door was opened to a vast referral network for Clark’s team of four. This has quickly become an invaluable asset.

“You can't expect to be an expert on everything, but if there's something that comes across my desk I’m not sure about, I’ve got 25 people I can reach out to straight away,” said Clark.

A unique recent example involved a client from New Zealand wanting to buy a plantation farm; obviously an exceptionally niche field that Clark conceded was “way out of our wheelhouse”.

Thankfully, Clark was able to move the client across the Lydian network and get the deal done without fuss. “It was a great outcome for this client who was struggling in New Zealand to find a solution,” said Clark.

Not every deal is going to be quite so unique, but it illustrates the power of having a diverse network of experts to work with.

The added infrastructure support means less time processing documents and more time fostering client relationships. In what could be a testament to the sophisticated client base at Clark’s fingertips, he is also seeing higher conversion rates.

This all paints Lydian’s and Clark’s partnership as a perfect example of the importance of forging close ties and lucrative referral networks in the current broking landscape, where customers are becoming more demanding, and the expectation of a diverse broker skill set is becoming greater.

The risk of not doing so is losing clients and lowering the quality of your offering, something Clark has witnessed firsthand where brokers haven’t had the capacity to meet their clients’ full demands.

It puts a brokerage like Clark Finance, with the breadth of infrastructure and depth of team, at a natural advantage.

“The model going forward is a group of brokers working together to handle reasonably large referral partners,” said Clark. “The referral partner can focus on growing their business and what they do, knowing that in the back end, we’re there to support them with whatever they need. Whether that’s five clients a week or 10 clients a week, it doesn't make any difference to the outcome.”

Succession plans

As the broking industry matures, the issue of how the more experienced brokers on the beat handle the business succession plans will become more important.

So how much did the allure of spending more time with family, or travelling, or lazing on the beach play into Clark Finance’s merger with Lydian?

“I saw that as one of the key reasons for doing it in a sense that it gave me an exit that allowed me to… think about what I do with the option of continuing on a more reduced workload,” said Clark. Which is not to say he’s looking to pack it in just yet; for now, Clark is laser focused on building out the Victorian business. 

“(The merger) gave my team the opportunity to grow and develop as well. It gave them the opportunity to be part of something bigger,” he said. “They’re going to gain a lot of experience over the next couple of years.”

Speaking of Victoria, what’s hot on the property market right now?

Clark is seeing a lot of activity in self-managed super funds (SMSFs), despite the controversial incoming tax changes.

The Labor government is doubling the rate of tax on superannuation balances above $3 million from 15% to 30%, including on unrealised gains, meaning paper profits on assets including property, and business holdings will be taxed annually.

Even more controversially, the tax, which is set to begin on 1 July, aiming to raise $2.3 billion annually, will not be indexed to inflation, meaning more savers will be captured under the new tax band over time.

Nonetheless, SMSFs are bringing in a lot of business for Clark; the vast majority of investors don’t have $3 million to work with, after all.

These complex issues really bring into focus the importance of robust financial planning expertise when navigating the Australian property market.

Thankfully, Clark has a vast referral pool to tap into.