Generation Development Group (ASX:GDG) is reportedly set to acquire Sydney-based Evidentia Group for approximately $320 million.
Evidentia provides investment advice on over $8 billion in assets to large wealth managers.
The Rob Coombe-led GDG has enlisted Jefferies and MA Moelis to secure the required equity funding for the deal.
Fund managers have been informed that the acquisition will be earnings accretive and aligns with GDG’s investment research arm, Lonsec.
The move follows Evidentia’s sale of a 30% stake to Scarcity Partners last year, a firm founded by former Pinnacle Investment Management executives that invests in minority positions in fund managers.
Around the same time, GDG raised equity to fully acquire Lonsec.
Managed accounts have become a preferred method for managing client portfolios.
Founded in 2019, Evidentia specialises in providing tailored investment solutions as an "outsourced chief investment officer" for wealth managers.
Its services mirror those provided to major superannuation funds by firms like Frontier Advisors and JANA.
The firm's leadership team includes Peter Smith, former head of NAB’s Australian advice division and current CEO of Evidentia, alongside co-founders Troy Swann and Leigh Cronin.