Sydney-based Champ Private Equity is to acquire a 75 per cent stake in boutique investment manager Centric Wealth. The agreement will see Champ’s funds invest $80 million in Centric, becoming the majority shareholder.

The deal follows overwhelming support from Centric shareholders at a general meeting held on 29 January. Unlike a typical leverage buyout, the companies stated, the transaction will both simplify and delever the balance sheet of the business, positioning it with financial support to execute its strategy.

“Our strategy is to provide superior quality specialist advice to high net worth individuals, to continue to attract leading advisors and to maintain independence from institutional ownership,” said Centric Wealth’s Michael Pillemer in a statement.

“Centric Wealth has one of the lowest number of clients per advisor in the Australian financial planning industry and is in the vanguard of the sector with a fee for service model,” Mr Pillemer said.

“While the sector may be at a difficult point in the economic cycle Champ believes the longer term dynamics of the financial planning industry are very attractive. Centric Wealth is a resilient business with strong growth prospects,” said Champ managing director David Jones.

“The business is well positioned in current markets, and we expect continued performance underpinned by diversified earnings, strong client retention, recurring income streams and low gearing in client portfolios, Mr Jones said.

Centric Wealth has assets under advice in excess of A$5.2 billion ($3.34 billion) and advises on a further $6 billion of in-force risk insurance cover, and $1.3 billion in loans under advice and other debt instruments. The company has 70 advisors and offices in Sydney, Melbourne, Brisbane and Canberra.