New investment initiative aims to support broker growth, succession planning, and business expansion
Australian Finance Group (AFG) has announced plans to take non-controlling equity stakes in mortgage broking businesses within its network, making it the first Australian mortgage aggregator to do so.
AFG chief executive David Bailey (pictured above left) said the Perth-headquartered, ASX-listed company plans to leverage its strong balance sheet to invest in well-managed, growth-focused broker businesses across Australia.
“AFG’s founders pioneered the mortgage broking industry 30 years ago,” Bailey said. “Since then, the industry has gone from strength to strength, with brokers now responsible for around 74% of all mortgages written.
“Given how established the industry now is, it’s only natural that demographics are changing. By investing in our brokers’ businesses, AFG can support succession planning for some and expansion for others.”
The initiative will be led by Vik Sukumaran (pictured above right), who was recently appointed to head AFG’s newly created broker investments team. Sukumaran brings over 20 years of experience in corporate advisory and transactions, including senior roles at ASX100-listed insurance intermediary Steadfast Group Limited and accounting firm BDO.
Bailey outlined the benefits of the program, emphasising its role in addressing the funding challenges faced by small business operators.
“We’ve heard from brokers that access to funding for business expansion or planning for eventual retirement can be difficult,” he said. “This investment program offers a solution by providing funding alongside additional expertise to help grow their businesses.”
Participation in the program is voluntary, with no obligation for brokers to take part. Bailey assured that AFG’s value proposition and service offering would remain consistent for all brokers, regardless of their involvement.
“Our unwavering commitment to brokers and the high-quality products and services we provide will remain the same for all member brokers,” he said.
AFG is currently in active discussions with interested brokers.
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