ASX-listed wealth manager moves to expand beyond platform administration into automated advice workflows

SYDNEY: Netwealth Group Limited announced Tuesday it has agreed to acquire 100% of Scale Up Platform Solutions Pty Ltd, trading as Paradino, an Australian provider of AI-enabled adviser workflow and advice automation technology, in a deal worth up to 39 million Australian dollars ($26 million).

The upfront consideration of AU$20 million comprises AU$15 million in cash and AU$5 million in Netwealth ordinary shares, with up to an additional AU$9 million in earn-out and retention payments over four years, subject to agreed milestones. Netwealth will also invest a further AU$10 million in Paradino over the next two years to accelerate its product roadmap and support growth in the Australian financial advice market.

The transaction is not expected to have a material impact on Netwealth’s near-term earnings, the company said, but is considered strategically important to its long-term growth ambitions.

What Paradino Does

Paradino’s core platform, built around its Athena AI capability, automates key stages of the financial advice production workflow, including preparation of advice documents, client communications, meeting notes and related administrative tasks. The company currently supports more than 500 financial advisers and generates AU$1.6 million in annual recurring revenue.

Paradino has posted strong growth in subscribers and recurring revenue since launch, with a churn rate of less than 1%.

Strategic Rationale

Netwealth said the acquisition supports its “Dx30” ambition by improving adviser productivity through automation of time-intensive workflows, including AI-generated file notes, Records of Advice, Statements of Advice, advice presentations and customer profiling.

“Australia continues to experience strong growth in wealth and retirement savings, increasing the demand for quality financial advice. At the same time, adviser capacity remains a key constraint on the number of clients advisers can effectively support,” the company said.

The deal expands Netwealth’s role beyond platform administration and advice implementation into advice documentation and servicing workflows — a strategic shift across the adviser value chain.

Executive Commentary

Matt Heine, CEO and managing director of Netwealth, said the acquisition is about helping advisers grow their businesses.

“Our focus is on supporting advisers to grow their businesses and achieve their ambitions. A key part of this is helping advisers increase productivity so they can support more clients and spend more time delivering advice,” Heine said.

“This acquisition expands Netwealth’s capability beyond platform administration into key advice workflows, increasing our support for advisers across a larger part of the advice process.”

Heine said the combined businesses could create “Australia’s leading AI-enabled wealth management and adviser productivity platform.”

Alex Gassner, co-founder of Paradino, said the partnership would accelerate the company’s vision.

“We founded Paradino to help advisers overcome the time and cost constraints that limit the number of clients they can effectively support,” Gassner said. “Netwealth’s platform, data, investment capacity and distribution provide a unique opportunity to accelerate our roadmap and deliver even greater value to Australian advisers and their clients.”

Transaction Details

The equity component of the upfront consideration will be escrowed and released in four equal tranches over four years. The cash portion will be funded from Netwealth’s cash reserves and debt facility.

Completion is expected by the end of October 2026, subject to customary conditions precedent.

Paradino, an early-stage business, has not yet reached break-even. Its EBITDA is expected to show a loss of approximately AU$3 million in fiscal 2027. Netwealth’s existing financial guidance is maintained on a pre-acquisition basis, and Paradino’s financial performance and the additional investment will be reported separately from Netwealth’s underlying results.

Netwealth has arranged an investor call for 9:15 a.m. AEST Tuesday.

About Netwealth

Netwealth Group Limited is a financial services company listed on the Australian Securities Exchange under the ticker NWL. Founded in 1999, it provides superannuation products, investor-directed portfolio services, managed accounts and fund administration. The company is one of Australia’s fastest-growing wealth management businesses.