Euroz acquires Entrust

Brokerage firm Euroz is expanding its funds management offering, with the acquisition of Perth-based Entrust Private Wealth Management for around $7.8 million.

That $7.8 million will involve Euroz issuing 5.4 million shares (currently worth $5.4 million) and delivering $2.4 million in cash.

Entrust will be in addition to Euroz’s two listed funds, Ozgrowth and Westoz Investment Company, which between them hold about $200 million.

In addition, Euroz owns 80 per cent of Westoz Investment Managament.

After Graeme Yukich, Andrew Fry and Brad Gordon founded the company in 2002, Entrust has grown to have around $565 million of funds under management.

Mr Yukich is now executive chairman of the company, and will remain in the role after the acquisition, while Mr Fry will stay on as managing director.

The fund will continue to operate under the Entrust name.

Euroz executive chairman Andrew McKenzie said that, as the usage of self managed funds grew, there would be an appetite for specialist advice.

“Entrust has an excellent reputation as a specialist wealth management business and its expertise in this area will provide the platform to grow our wealth management capabilities through further acquisitions and organic growth,” he said.

Mr McKenzie said the business would fit well with Euroz’s existing offerings.

“Lower technology costs, the exit of many of the larger investment banks from the sector and the demand from clients and advisers for increased product independence has created an opportunity for us to develop a best in class wealth management offering," he said. 

“Our established WA market position, research, institutional and equity capital market strength will provide greater opportunities for all Entrust clients in the merged Group.”

Mr Yukich said the deal would build on Entrust’s offering to its high net worth client base.

“The business will continue to operate under the Entrust Private Wealth Management brand and our clients will experience a seamless transition,” he said.

“We believe the Euroz corporate brand and $115 million balance sheet strength will provide significant opportunities to our clients in the future.

“We are confident in our ability to integrate the two firms and cultures into a significant wealth management business into the future.”

Euroz last traded at $1 per share.