Netwealth Group, a high-end wealth management company whose growth is accelerating exponentially, said Monday it had acquired the online financial education firm Flux Corp for $2.46 million in cash, closing a strategic deal aimed at deepening Netwealth’s penetration of younger Australian investors. For the flow of intergenerational transfers-estimated to swell to more than $3 trillion over the next decade-the wealth management firms supporting them need to be adept at speaking multiple languages.
In turn, Netwealth CEO Matt Heine described the deal as being a “natural fit” for the company, emphasizing that the firm’s desire to equip its adviser and licensee network with tools to effectively engage new market segments. ” Flux’s innovative approach to financial education will allow us and our advisers to connect with the next generation of investors in meaningful ways,” he noted pointing out this one.
Founded in 2020 by school friends Gustavo Hoirisch, Justin Joffe, and Brett Joffe, Flux has become one of the most exciting names in the fintech space for its attractive, easy-to-consume educational financial literacy content. The company’s toolset is designed to remove mystery from complex financial concepts and make learning fun. In a description of the mission of his company, Flux’s CEO Brett Joffe explained: “By use of technology, Flux wants financial education to be accessible to each and every individual regardless of his background.”
Netwealth, which claims to be both a technology company and also a superannuation fund and administration company, experienced increased funds under administration. For the September quarter, FUA stood at $95.4 billion, an increase of 7.4 billion on the quarter before, with net inflows of $4 billion-a rise of 93.5% compared to last year.
The acquisition of Flux further cements the company’s commitment to building its service offers since acquiring the data management and analytics platform, Xeppo, for $5.9 million last quarter.
Flows currently engages more than 430,000 members, including 84,000 subscribers on its mobile app. The platform offers such important resources as stock market news, economic insight, and personal budgeting tools designed to reach this emerging affluent market segment, where financial education would be that much easier for uncertain individuals to navigate their journeys.
Heine welcomed the Flux team, noting their success in connecting with young adults and facilitating financial education. “It is a great addition to our business and provides a simple entry point for many Australians starting their financial education journey,” he remarked.
This acquisition positions Netwealth to better serve a critical segment of the Australian market, underscoring its commitment to fostering financial literacy and engagement among younger investors.
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