Michael Wright will succeed Peter Smith as Chair. Importantly, Smith will remain deeply involved as Founder, Evidentia Group Board Member, Generation Development Group (GDG) Director and Executive Director across GDG. He will continue to play an active role with Evidentia clients, strategic relationships, and in overseeing future strategic initiatives.

This transition reflects the Group’s long-term governance and succession planning and the Board’s commitment to continuity, stability, and sustained strategic execution as Evidentia enters its next phase of growth.

Introducing Louise Watson

Louise Watson is a highly regarded asset management executive with extensive experience leading growth and transformation across global and domestic markets. Most recently Country Head of Natixis Investment Managers Australia and New Zealand, she was responsible for driving operational transformation, expanding and diversifying institutional and adviser distribution capability, and accelerating both organic and inorganic growth.

Her career spans senior roles with leading global financial institutions including JPMorgan, Man Group, Credit Suisse, Aberdeen and Challenger. Across these organisations she played a pivotal role in developing multi-affiliate investment platforms, strengthening institutional and wealth distribution strategies and supporting advisers, wealth firms and institutional clients with differentiated investment solutions across public and private markets.

Louise is recognised for her strategic leadership, strong commercial acumen, and client-focused approach. She brings deep investment, distribution and advice industry expertise, with a strong ability to bridge sophisticated investment capability with adviser and client outcomes. Louise’s appointment comes at an important point in Evidentia Group’s growth journey, with her expertise expected to accelerate distribution opportunities and scale platform capability as the business enters its next phase.
Wright will work closely with Watson to ensure a seamless leadership transition and maintain strategic momentum across the Group.

Continued leadership and strategic stewardship

As Chair, Wright will remain closely involved in Evidentia Group’s strategic direction, corporate governance, and long-term growth agenda.

Under Smith’s and Wright’s leadership at Evidentia and Wright’s tenure as CEO of the Lonsec Group, the businesses have been reshaped and strengthened within the Australian financial services sector. Wright led the integration of Evidentia and Lonsec Investment Solutions into a scaled, market-leading managed accounts platform, while enhancing governance and risk and delivering sustained, innovation-driven growth for advisers and clients, firmly positioning Evidentia Group as one of the most trusted and progressive organisations in the managed accounts industry.

Reflecting on his transition to Executive Chair, Michael Wright said: “Leading Lonsec Group and Evidentia Group has been one of the most rewarding chapters of my career. I am incredibly proud of the transformation we have achieved and the strong, future-focused organisation that has been built.

“As the Group enters its next phase of growth, I am excited with the addition of Louise and her significant expertise and look forward to supporting Louise and the leadership team as Evidentia’s Chair. This transition allows me to continue contributing to Evidentia’s long-term strategy, governance and ambition while ensuring the business remains well positioned for the future.”

Further reflecting on the transition, Founder and Director of Evidentia Group – Peter Smith said, “It has been particularly rewarding to see Evidentia and Lonsec Investment Solutions come together under Mike’s tenure as CEO to create a scaled and leading managed accounts business, which has continued to grow and strengthen its position in the market.”

Support from Generation Development Group

Grant Hackett, CEO of Generation Development Group, said: “Mike has demonstrated exceptional leadership throughout his time leading Evidentia Group and Lonsec Group. His strategic vision, focus on governance and risk, and commitment to delivering value for advisers and clients have been instrumental in shaping these businesses.

“We are delighted that Mike will continue to play a critical role as Chair of Evidentia Group, providing continuity and strategic leadership as the organisation enters its next phase.

“Importantly, we are pleased that Peter Smith continues to play an active and influential role across Evidentia and GDG as Founder and Director, maintaining strong continuity across clients, market relationships and strategic initiatives.

“We welcome Evidentia Group’s new CEO – Louise Watson, a highly experienced asset management leader with a proven track record in scaling investment businesses and driving strategic growth, who will commence in the role in August.

“GDG remains strongly committed to supporting and investing in Evidentia’s next phase of growth. The combination of ASX 200 backing and preserving the entrepreneurial culture of the business positions Evidentia strongly for continued expansion.”

A planned and positive transition

The Board emphasised that this transition is the outcome of a structured and considered succession process, designed to support Evidentia Group’s long-term growth strategy.

Evidentia Group remains focused on delivering exceptional outcomes for advisers, clients and shareholders, and this leadership evolution underscores the Group’s commitment to strong governance, continuity, momentum and market leadership.

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Grant Hackett

Generation Life, a market leader in tax-effective investing and a specialist retirement income subsidiary of Generation Development Group (ASX:GDG), has announced a strategic alliance with BlackRock.

By bringing together Generation Life and BlackRock’s local and global retirement investment expertise, the two firms are focused on setting a new standard for managing longevity and sequencing risk with investment solutions developed in Australia for Australian retirees. As part of its long-term commitment to the alliance, BlackRock will acquire a minority stake in Generation Development Group.

Grant Hackett OAM, Group CEO of Generation Development Group said, “BlackRock’s investment in Generation Development Group strengthens our shared commitment to reshaping retirement income through innovation, continuing to build market-leading solutions that deliver superior outcomes for retirees and superannuation funds, while creating long-term value for financial advisers and our shareholders.

“This strategic alliance validates our proven track record and builds on the strong momentum Generation Life has achieved in recent years as we continue to expand our capabilities and grow our presence in the financial advice and retirement income sector.”

Jason Collins, Head of BlackRock Australia, said, “BlackRock’s investment in Generation Development Group will ensure the best of our global retirement expertise and technology is delivered to the Australian marketplace through a proven local innovator.

“By combining Generation Life’s technical expertise and product structuring capabilities with BlackRock’s scale in technology and investment management, this strategic alliance enables BlackRock to contribute to the development of the retirement income sector in Australia at a time of increased client and policymaker focus.”

Australia’s retirement paradox: Wealthy but wary

The growing needs of Australian retirees, combined with the federal government’s focus on the Retirement Income Covenant, presents an urgent challenge. Many retirees remain hesitant to spend their savings due to the fear of outliving their capital, while financial advisers and super funds grapple with limited fit-for-purpose solutions.

Australia ranks fourth in the world for life expectancy^[1] and Australians over 50 now control 69%^[2] of the nation’s $4.2 trillion in superannuation assets^[3] —a figure projected to reach $9 trillion by 2040^[4]. There are currently over 4 million retirees, with that number expected to grow by 670,000 in the next five years^[5]. Australia is also one of the wealthiest nations globally[^[6], with the average total net wealth of a Baby Boomer household sitting at $2.31 million.^[7]  Yet despite this, around 84% of Australian retirement savings are in account-based pensions with minimal longevity protection^[8]. The result is under-spending in retirement and increased financial insecurity among older Australians.

A platform built for the future of retirement

Generation Life has a strong history in delivering flexible, innovative investment strategies and solutions for financial advisers and their clients, designed to support the evolving needs of Australian retirees. Its reinsurer arrangement and scalable administration infrastructure offer superannuation funds a turnkey platform to develop or enhance retirement offerings – without the burden of building complex in-house systems.

The strategic alliance marks a transformational step for Generation Life and a key milestone in Generation Development Group’s growth strategy, building on strong momentum following its acquisitions of Lonsec in 2024, and managed accounts group Evidentia earlier this year.

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Notes:
[1] Australian Bureau of Statistics – Life Expectancy 2021 to 2023
[2] Australian Prudential Regulation Authority – Quarterly Superannuation Industry Publication as at March 2024.
[3] Australian Prudential Regulation Authority – APRA releases superannuation statistics as at December 2024.
[4] Investment Magazine – Super assets hit $4 trillion as systemic risks loom.
[5] Actuaries Institute – Retirement Matters
[6] UBS Global Wealth Report 2024
[7] KMPG – The great wealth transfer begins as Gen X overtake Boomers for housing and shares
[8] APRA – Annual Superannuation Bulletin June 2022, Table 8.

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Mike Wright

The Lonsec Group (Lonsec) has announced a strategic realignment of its businesses as it continues to strengthen it capabilities and prepare for future growth. This follows the announcement by parent company Generation Development Group (GDG) earlier today of the acquisition of managed account business, Evidentia Group (Evidentia).

Following the acquisition of Evidentia, Lonsec’s research and managed account businesses will realign into two new business units, Lonsec Research and Ratings and Evidentia Group. The new Evidentia Group is the combination of the acquired Evidentia, together with Lonsec Investment Solutions and Implemented Portfolios.

Highly regarded executive Mike Wright, who has served as Group Chief Executive Officer of the Lonsec Group for the past four years, will take up the role of Chief Executive Officer at Evidentia Group. He steps into this leadership function within a fast growing and highly dynamic managed accounts sector that is expected to grow from $206 billion in 2024 to some $474 billion by 2030^[1].

Lonsec Research and Ratings will comprise the Lonsec Research, iRate, and SuperRatings brands.

Lorraine Robinson has been appointed Chief Executive Officer of the newly formed entity, readying the business for future expansion. Over the past five years, Lorraine has held the position of Executive Director of Lonsec Research, propelling the business into unparalleled growth during her tenure. Today, the Lonsec business encompasses over 1,800 managed investments, listed securities and superannuation funds researched or rated through its Lonsec Research and SuperRatings brands.

Lonsec’s unrivalled research and ratings track record continues

Grant Hackett, Group Chief Executive Officer at GDG thanked the Lonsec executive team for its enthusiasm to embrace the realigned roles and company structure.

“GDG is excited about the next growth phase for the newly formed Evidentia Group under Mike Wright’s leadership. Equally, the seamless transition of Lorraine Robinson to lead and guide Lonsec Research and Ratings provides a strong platform in support of GDG’s continued investment in the growth and success of our market-leading research business.

“Lorraine is the natural choice to lead the business in its next growth phase and continue to build on the integrity and proud Lonsec heritage of high-quality independent research and ratings services – upon which informed investment decisions are made daily.”

Wright to lead the undisputed leader in the managed accounts sector

With a proven track record of rapid growth in managed account businesses, both at Xplore Wealth and as Lonsec Group’s CEO, Mike Wright brings over 30 years’ financial services experience to his new role. His extensive career in the wealth management sector includes a broad range of leadership roles at BT, Westpac, and ANZ.

He said: “I am thrilled about the next iteration of Lonsec’s journey. This is a celebratory milestone for Lonsec and a testament to the entire team’s contribution to create today’s successful business. Lonsec Investment Solutions has made fantastic strides in the past five years, and it’s exciting to continue that, but also hand the research baton to Lorraine’s proven leadership.

“I’m excited to be working closely with Evidentia Co-founder Peter Smith, who has built a phenomenal business over the past 5 years, and I believe the collective strengths of Evidentia, Lonsec Investment Solutions and Implemented Portfolios will provide unrivalled end-to-end managed account solutions for licensees, financial advisers, and their clients.”

Peter Smith, co-founder of Evidentia, will assume the role of Executive Chairman of the newly formed Evidentia Group and join the Board of Generation Development Group.

Grant Hackett said: “Mike embraced this new opportunity under our realignment and is unequivocally the right individual to lead a new business formed by two managed account market leaders, with a combined total of $25 billion in funds under management (FUM). Mike’s proven leadership and capacity for innovation, makes him an exceptional fit to help take this newly merged business, Evidentia Group, to new heights.”

Robinson to lead the industry-leading research and ratings business

Lorraine Robinson, Chief Executive Officer at Lonsec Research and Ratings said: “The newly established Lonsec Research and Ratings unifies our award-winning research brands, bringing all our centres of research excellence into one business unit, allowing us razor sharp focus on our core vision of helping Australians make better business decisions.

“This realignment of the businesses, backed by GDG’s continued dedication to investing in our growth and continued success, will help us to drive innovation and explore new services for each of our unique client cohorts, working with them closely and remaining at the very forefront of the ever-evolving research sector.”

With the establishment of Lonsec Research and Ratings, the business will continue its unrivalled legacy of fearlessly independent research and ratings services across a broad spectrum of Australia’s investment, superannuation, financial advice, and services sector.

Lonsec Research and Ratings comprising of Lonsec Research, SuperRatings and Lonsec’s award winning research portal iRate, will continue to operate under their distinctive, independent brands. Kirby Rappell, Executive Director of SuperRatings will continue to head up the Superannuation research division and remains an integral member of the leadership team.

Whilst each of the brands service different customer bases, underpinning all is a mandate to provide meaningful insights, data, benchmarking and reporting on investment and superannuation products. Through this unification, Lonsec Research and Ratings will be able to leverage the strengths across all teams to enhance its broader market proposition.

Lorraine’s career within the financial services industry spans over 30 years, with leadership and investment positions in prominent organisations such as Evans and Partners, Goldman Sachs, and Macquarie Group. She brings to the role a deep and broad understanding of the research sector, as well as in-depth, hands-on experience in investment markets.

Final word: An enduring heritage of knowledge and strength in research and managed accounts

Established in 1994, Lonsec has expanded significantly over the past 30 years to become Australia’s market leading and pre-eminent Investment Research provider to the financial services sector.

In 2014, iRate – Lonsec’s award-winning and market leading investment research portal, was purchased by Lonsec, elevating its research service offering to financial advisers and their clients, and accessed today by over 5800 users.

In 2015, responding to the growing administrative and regulatory demands being placed on financial advisers, Lonsec launched its managed accounts business – Lonsec Investment Solutions (LIS), offering a diverse range of managed portfolio solutions, including MDA capability, through its acquisition of Implemented Portfolios in 2022. Its managed account business has grown to $12.7 Billion in funds under management over the past nine years.

Today’s realignment of the Lonsec operating businesses, under market leading executive leadership, backed by the continued investment and resources of GDG Group, heralds a new phase for the Lonsec brand to continue a proud legacy of exceptional performance and enhanced customer experience.

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Notes:
[1] IMAP (Jun-20-24), NMG Consulting (historical SMA type splits and all forecasts including the treatment of MDA as including MDAs, IMAs and other discretionary with no roll-forward or adjustment for MDA managers that did not provide data to IMAP in Jun-24

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Rob Coombe

Generation Development Group (ASX: GDG) has entered into a binding agreement to acquire 100% of Evidentia Group (Evidentia), significantly strengthening its position in the rapidly growing managed accounts market, which is currently valued at over $200 billion^[1]. The managed accounts sector is expected to grow at an impressive 15% per annum from 2024 to 2030.^[2]

Founded in 2018, Evidentia is Australia’s leading provider of tailored managed account and investment management solutions with $12.7 billion in funds under management (FUM), presenting an exceptional growth opportunity for Generation Development Group.

Generation Development Group’s acquisition of Evidentia and subsequent merger with Lonsec Investment Solutions will bring together two of the leading and fastest growing managed account providers as the undisputed leader in the market, with a combined total of over $25 billion FUM. By merging their collective strengths, Generation Development Group will provide leading end-to-end investment management and managed account solutions for licensees, financial advisers, and their clients. The newly formed business will be branded as Evidentia Group.

Rob Coombe, Executive Chairman of Generation Development Group, said: “I’m incredibly excited to be welcoming the talented team at Evidentia to the Group. We look forward to continuing to invest in the combined business to drive growth in one of the most dynamic areas in the wealth management industry in Australia.”

Over the past decade in Australia, the demand for separately managed accounts (SMAs) and managed discretionary accounts (MDAs) has grown rapidly, driven by structural changes in wealth management and increasingly sophisticated investor needs. This growth is reflected in a 27% p.a. increase in the size of the managed accounts market, from $80 billion in 2020 to $206 billion in 2024^[3]. This demand is being driven by licensees and financial advisers focused on delivering better client outcomes and enhancing the overall client experience, while also improving operational efficiency and managing business risks.

Grant Hackett, Group Chief Executive Officer of Generation Development Group, said: “This acquisition is a highly strategic and attractive opportunity that is perfectly aligned to Generation Development Group’s broader growth strategy, following the acquisition of Lonsec Group. The Group expects the managed accounts market to grow to $474 billion by 2030^[4]. Both Evidentia and Lonsec Investment Solutions have been among the fastest-growing businesses in the industry, and together, they will create a clear and undisputed market leader in the rapidly growing managed accounts sector.”

Managed accounts are considered the next evolution in Australian wealth management, similar to the rise of investment platforms over the past 25 years. They simplify administrative burdens, allow for customisation of portfolios, and enhance communication and scalability. These benefits deliver a more personalised investment experience, improved after-tax performance and investment outcomes.

Re-shaped businesses and executive teams

The acquisition of Evidentia has provided Generation Development Group the timely opportunity to reshape and strategically align its businesses to deliver growth. This will ensure it continues to deliver exceptional performance and enhance its customer propositions across each of its products and brands. Moving forward, Generation Development Group will operate three distinct businesses: Generation Life, Lonsec Research and Ratings, and Evidentia Group, which will be formed through the merger of the Evidentia and Lonsec Investment Solutions businesses.

Peter Smith and Michael Wright will lead the newly formed Evidentia Group. Peter Smith, co-founder, Chief Executive Officer and Chairman of Evidentia, will assume the role of Executive Chairman at Evidentia Group and join the Board of Generation Development Group. Michael Wright, who has served as Group Chief Executive Officer of the Lonsec Group, will assume the role of Chief Executive Officer at Evidentia Group.

Peter Smith, Executive Chairman of Evidentia, said: “The combination of Evidentia and Lonsec Investment Solutions will continue to build upon the expanded team of over 30 investment management professionals, adding more experienced portfolio managers with strong financial advice expertise, and specialist resources including strategy-based portfolio design and business support. Working groups have been established to evaluate client-focused benefits due to the scale of the combined business, ensuring all benefits created are realised and reinvested back into the business, creating a stronger value proposition for our financial advisers and clients.”

Lonsec Research and Ratings will operate as a stand-alone business, with the Lonsec brands – SuperRatings and iRate aligning under it, bringing all the collective research strengths and areas of key excellence into one business unit. Lorraine Robinson has been appointed Chief Executive Officer of Lonsec Research and Ratings, previously serving as Executive Director of Lonsec Research, which has grown to become one of Australia’s largest and most respected providers of investment research for the financial services sector, evaluating and rating over 1,800 managed investments, listed securities, and superannuation funds. Generation Development Group will further build upon this momentum and is dedicated to investing in the growth and continued success of the research business.

Michael Wright, Chief Executive Officer of Evidentia, said: “Bringing together Evidentia and Lonsec Investment Solutions is an exciting next step in our rapid growth journey for both our managed account and research businesses, as well as the broader Generation Development Group. It also provides a logical and timely opportunity to merge Evidentia with Lonsec Investment Solutions while establishing Lonsec Research and Ratings as a stand-alone business, enabling each brand to focus on their core strengths and value propositions and preparing each business unit for their next evolution of growth.”

Amanda Smerdon has been appointed to work alongside Grant Hackett, Group Chief Executive Officer at Generation Development Group, to help lead the Group’s transformation. As part of her role, she will work alongside key executives to oversee the separation of the newly formed Evidentia Group and Lonsec Research and Ratings businesses, to transition shared services in a phased approach. This will ensure each business remains independent and is structured to maximise performance and superior market-leading client outcomes.

This transaction and the strategic alignment of Generation Development Group’s businesses will continue to deliver best-in-class investment solutions and services from Generation Life, Lonsec Research and Ratings, and Evidentia Group, further strengthening our growth strategy. The Group remains committed to adding value and upholding the high standards of service that clients expect as market leaders across each of its products and brands.

The transaction is expected to complete in mid February 2025 following completion of an associated capital raise.

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Notes:
[1] IMAP (Jun-20-24), NMG Consulting (historical SMA type splits and all forecasts including the treatment of MDA as including MDAs, IMAs and other discretionary with no roll-forward or adjustment for MDA managers that did not provide data to IMAP in Jun-24
[2] Ibid
[3] Ibid
[4] Ibid

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Mike Wright

Lonsec Holdings (Lonsec) is poised to further enhance its position as the pre-eminent provider of investment research, product ratings and managed account solutions as it announces today that its largest shareholder, Generation Development Group (GDG) is seeking to acquire 100% ownership of the Lonsec Group.

Under the terms of the agreement, GDG will acquire the remaining interest in Lonsec for an upfront consideration of $197.4 million together with a deferred earn out payment of up to $55.7 million.

Lonsec considers GDG to be a highly logical partner to accelerate the next phase of Lonsec’s growth. The proposed transaction, which is subject to approval by GDG shareholders, will enable Lonsec to further accelerate its organic and inorganic growth strategy by providing greater access to capital, an expanded product suite and greater market access. The proposed acquisition presents multiple growth avenues to Lonsec including further development of Lonsec Investment Solutions and M&A opportunities.

Mike Wright, CEO of Lonsec, is pleased with the transaction, saying “This is an exciting time for Lonsec and a recognition of the strength of the business we and those before us have built for our clients since 1994. GDG has been a substantial shareholder of Lonsec since 2020 and has a strong understanding of the Lonsec business and is committed to supporting Lonsec in its strategic plans to grow further.

“GDG are an ideal acquisition partner, intending to continue to operate Lonsec predominantly as a separate business, which means continuity of our existing product and service propositions for our clients. This transaction will enable Lonsec to accelerate plans for further investment into its business and we are enthused about the opportunities this deal presents for the business and our clients.”

Grant Hackett, CEO of GDG, echoes these sentiments and comments “Since we acquired an initial stake in Lonsec in 2020, we have witnessed the strong growth and success of the business driven by an excellent leadership team.  We are excited to increase our exposure to the business and help shape the next phase of growth for Lonsec.”

Lonsec was supported through the transaction by Luminis Partners as lead financial adviser, together with Baker McKenzie, McGrathNicol and EY Australia.

Highlights:

• Generation Development Group (ASX:GDG) acquired a minority holding in Lonsec Holdings (Lonsec) in September 2020,
• GDG to acquire the remaining 61.9% of Lonsec’s fully diluted share capital, to be funded by a Conditional Placement and Equity Raising by GDG
• On completion of the upcoming transaction, GDG will own 100% of the issued capital of Lonsec
• The transaction will be settled through a combination of cash and scrip consideration
• Subject to GDG shareholder approval, the transaction is expected to be completed in August 2024
• GDG is committed to supporting the existing Lonsec business, further enabling accelerated growth and delivering greater balance sheet strength

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