MA Financial Group (MAF) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of IP Generation, a leading real estate fund manager with ~$2 billion AUM, expands real estate business and diversifies AUM to over $12 billion, with real estate assets at $8 billion.

• Enhances exposure to retail shopping centers and alternative real estate, leveraging a favorable market cycle and deepening sector expertise.

• Highly complementary distribution channels, with IP Generation focused on ultra-high-net-worth investors and strong presence in Victoria and Melbourne.

• Strong cultural alignment and leadership continuity, with both organizations being founder-led and analytical, and IP Generation's leadership joining the combined platform.

• Strengthens Melbourne presence, adding about 30 staff and expanding local networks.

Financial terms and conditions

• Total consideration of $90.4 million: $80 million in shares upfront, $10.4 million deferred (50% cash, 50% shares after 12 months), with long-term escrow up to five years.

• Acquisition at a 7.9x–8x EBITDA multiple, with 80-85% of EBITDA recurring.

• Additional earnout consideration based on future AUM growth and performance milestones; some historic performance fees remain with sellers.

• Scrip consideration subject to escrow, aligning interests of IP Generation principals.

• Pro forma earnings accretive, expected to be broadly neutral in the current year and materially accretive in FY25.

Synergies and expected cost savings

• Distribution and scale synergies expected, with minimal overlap in distribution channels and property management.

• Enhanced capital raising and AUM growth by combining complementary investor bases and networks.

• Limited cost synergies anticipated; focus is on top-line growth and leveraging broader distribution.

• Investors gain access to broader expertise, diversified opportunities, and strengthened financial backing.