Financial advisory and asset management firm Prime Financial Group (ASX: PFG) has recently made another acquisition, this time acquiring alternative asset manager Altor Capital. This acquisition is part of Prime’s plans to double its revenue to $50 million by 2025.
Altor Capital, co-founded by Harley Dalton and Ben Harrison, invests in various assets, including equity, hybrids, options, and term debt. The acquisition includes Altor’s two core fund strategies covering private equity and private credit.
Prime expects Altor to bring in annualized revenue of approximately $1.8 million. The acquisition consideration includes an initial payment of $1.5 million, with an additional earn-out of up to $4.2 million over the next three years based on Altor’s annual EBITDA performance.
The acquisition also provides Prime with Altor’s funds management platform, which the company has developed over the past six years. This platform covers distribution and administration, giving Prime the ability to launch new products in the alternative asset management space.
Prime intends to leverage this capability and expand its alternative asset management business as part of its Wealth Management offering.
Simon Madder, Prime’s chairman and managing director, says the goal is to double group revenue to $50 million between FY22 and FY25 through organic and inorganic growth. He believes that the acquisition of Altor, along with the previous acquisition of Intello, positions Prime well to achieve this goal.
Prime posted revenue of $33.7 million in FY23, a 28% increase compared to the previous year. The revenue growth has been driven by strong organic growth and the Intello acquisition.
By acquiring Altor, Prime aims to become a leading provider of alternative assets. The transaction is seen as a strategic step forward for both clients and employees.
Overall, Prime’s acquisition of Altor Capital reinforces its commitment to growth and demonstrates its capability to adapt to the evolving financial landscape. As the alternative asset management space continues to gain traction, Prime’s expansion will likely strengthen its position in the industry and enable it to better serve its clients.
