Listed fund management and advisory firm Clime Investment Management is capitalizing on its fundraising last year by acquiring Melbourne-based MTIS Wealth Management.
MTIS Wealth provides accounting services, financial advice and superannuation administration to high net worth clients. It has been around for 20 odd years and manages approximately $350 million in client assets.
It has approximately four financial advisors and support staff. MTIS directors and key advisers, Anna Garuccio and Pauline Hammer, were to switch to Clime.
Shares in Clime were halted on Tuesday as its board prepared to finalize the acquisition. The selling price would have been around 5.5 times pre-tax profit.
For Clime, MTIS would fit perfectly with its private wealth management business and its acquisition two years ago of the financial advisory business owned by the ex-Sargon, Madison Financial Group. Clime paid $4.4 million for Madison, which at the time was managing $3.8 billion in client assets.
The latest addition would take Clime’s private wealth assets above the $800 million mark. Combining other parts of the business (fund management and Madison), Clime Investment Management would have total client assets of $5.5 billion.