SYDNEY, AUSTRALIA: TIP Group is acquiring 50% of Conscious Capital for $1.97 million in TIP Group shares and $1.78 million in cash. The transaction values 100% of Conscious Capital’s at $7.5 million, equivalent to a multiple of 5.9x its average NPAT for the last three financial years.
The transaction needs shareholder approval as two of the vendors of Conscious Capital (Howard Coleman and Regan Passlow) are directors of TIP Group.
Conscious Capital Limited is the trustee and manager of the Conscious Investor Fund (CIF), a wholesale managed fund founded in 2013 to assist Teaminvest members manage their wealth should they no longer be comfortable managing their own portfolio.
After reaching scale, CIF now accepts funds from investors outside the Teaminvest membership. CIF has delivered a compounded net annual return of 12.77% per annum to investors since inception, 841bps per annum above the ASX200 Accumulation Index for the same period.
CIF has grown FUM by 50.3% per annum. Fund managers are inherently scalable: the marginal cost of adding a new member or deploying further funds is minimal. Fund managers with good returns are able to grow FUM, and profits, without substantial new costs.
Conscious Capital is complimentary to TIP Wealth. It utilises the intellectual property developed by Teaminvest, and is one of the underlying investments of the Teaminvest Diversified Growth Fund. Acquiring Conscious Capital ensures its long-term sustainability.
TIP Group aims to be the financial institution of choice for first generation wealth, linking the knowledge and capital accumulated over their careers with the next generation of business leaders to achieve outstanding returns.