Koda Capital Welcomes Emigrant Partners as a Minority Strategic Investor

News provided by

May 11, 2022, 11:33 ET

Emigrant Partners' investment will support the next phase of Koda's growth, with a shared commitment to partner ownership and conflict-free independent advice model

NEW YORK, May 11, 2022 /PRNewswire/ -- Koda Capital ("Koda"), a leading Australian independent financial advice firm for high-net-worth clients, today announces that Emigrant Partners will become a strategic minority investor in Koda. Koda's partners will continue to own 80% of the economics of the business.

Koda has successfully grown to be a leading independent wealth management business in Australia with 39 Partners, and 28 advisors managing AUD $10bn of client assets. Koda was established in 2014 with a founding principle of providing independent financial advice free from conflicts of interest, with no vertical integration or fees earned from products.

Emigrant Partners is a specialist capital and advice partner with a strong track record of making non-voting, minority investments in leading independent wealth management businesses. Emigrant Partners has minority investments in 18 firms that collectively advise on over USD $90 billion of client assets. Koda is Emigrant Partners' first direct partnership outside of the US.

As a strategic investor, Emigrant Partners will provide valuable insights and know-how for Koda in areas that include best practice in technology and operations, financial advisor acquisition strategy and funding, wealth advice market insights, as well as peer-based networks and professional development for the Koda team. Emigrant Partners will also provide growth capital to support the acquisition of small-scale, high quality financial advice businesses aligned to Koda's values and funding structures for equity recycling to support new equity partners joining the firm.

Koda's financial advisors were MHB Advisors, a specialist investment bank to the asset and wealth management industries, with legal advice from Kardos Scanlon, the specialist cross-border corporate law firm. Emigrant Partners' legal advisor was Clayton Utz, a leading Australian law firm.

Commenting on the announcement, Koda Chairman Steve Tucker said:

"Over the last seven years we have established Koda as a leading independent wealth advisory business, owned by its people and free from the conflicts of interest that come with vertical integration. Koda's independent advice model has enabled us to provide a compelling offer to clients, grow client funds to scale and deliver strong revenue and earnings growth over the last 5 years. The investment by Emigrant Partners is the outcome of a strategic review process we kicked off last year, with a vision of finding a strategic partner to support the next phase of growth. With the growing number and wealth of Australians seeking truly independent financial advice, we see an opportunity to double in scale over the next 5 years."

Commenting on the announcement, Koda CEO Paul Heath said:

"In looking for strategic partners, we were clear that we didn't want to sell our independence – we wanted to preserve our independence. This investment will see Koda double down on independence and staff ownership with our staff continuing to own 80% of the economics of the business. Koda will also benefit from Emigrant Partners' investments in 17 highly successful wealth businesses in the US as well as access to growth capital as we continue to attract high quality advisors to the Koda team. "The investment has been made at a premium valuation, reflecting the quality of our business, the value Emigrant Partners place on owners maintaining control and their understanding of the high-quality US wealth market which is more developed than the Australian market."

Karl Heckenberg, CEO of Emigrant Partners added:

"We are very excited to be joining the Partners of Koda as a minority investor in their business, our first investment outside the US. Koda has successfully established a high quality independent advice business in the large and growing wealth market in Australia – a market that we see as very attractive. Our minority investments in employee-owned, founder-led firms enable our partner firms to continue to grow while maintaining a culture of trust, ownership and service excellence that draws top-tier client and advisors to their firms."

Contact: Lucy O'Brien, [email protected]

Emigrant Partners LLC

Emigrant Partners ("EP") is a capital and advice partner to exceptional management teams building successful wealth, asset, and alternative asset management firms. EP makes long-term, non-voting, minority investments tailored to meet the needs of each partner firm. EP is currently partnered with 18 firms that advise on over USD $90B in aggregate AUM and AUA.

EP is wholly owned by Emigrant Bank, the largest family-owned and operated bank in the United States. Emigrant Bank is owned and operated by the Milstein family, who have significant investments in large scale office, residential and hotel real estate, financial services, consumer goods, energy, entertainment, sports, finance, technology and agriculture businesses.

For more information, visit: www.emigrantpartners.com

SOURCE Emigrant Partners