Wealth management and investment administration company Mason Stevens is reportedly attracting interest from an offshore suitor, which could see it shelve plans for an ASX listing.
While the name of the suitor is undisclosed, sources suggest it is likely a foreign industry player already active in the wealth management sector.
Mason Stevens had initially planned to go public last year through advisers Barrenjoey and Morgans. The deal, which valued the business between A$200 million and A$500 million, was abandoned due to insufficient investor appetite at the proposed price.
Often compared to fund administration businesses like HUB24 and Netwealth — valued at up to 20 times their earnings — Mason Stevens has built its success on advanced platform technology that enables a lower cost base for financial advisers. The firm serves a national clientele through a 70-strong team, offering global investments and tailored financial solutions.
Leadership includes chairman Andrew Walsh, former chief executive of financial software company Iress, and chief executive Tim Yule, who joined in 2015 and took the helm in 2022. The company is owned by its staff and clients, with approximately 100 shareholders, and its founders retaining the largest stakes.
Is a sale more appealing?
Listing on the ASX was intended to raise expansion capital but challenging equity markets may make a sale more appealing. Domestic suitors have previously passed on acquisition opportunities, citing a high valuation.
Recent underwhelming market debuts, such as Symal Group’s flat opening and payments infrastructure provider Cuscal’s early decline, highlight the difficulty smaller firms face in securing robust investor support.
Mason Stevens offers investment administration and managed account solutions across multiple assets and currencies.