TA backs Australia ETF manager BetaShares

In the past five years, the growth-oriented PE firm has also backed Yarra Capital Management, an equities and fixed income spinout from Goldman Sachs in Australia, Fisher Funds, a New Zealand investment manager, and Honan Insurance, an Australian corporate insurance provider.

BetaShares was established in 2009 and has more than A$16 billion ($13.2 billion) in assets under management. With over 60 products available, it claims to offer the broadest range of exchange-traded products that can be bought and sold via the Australian Securities Exchange. Its ETFs cover Australian and international shares, fixed income, cash, currencies, commodities, and alternative strategies.

TA is taking out positions in BetaShares held by Mirae Asset Financial Group and other minority investors. It is also putting in new capital to drive business expansion. Mirae held 51% of BetaShares, having taken ownership through its 2011 acquisition of Canada’s Horizons ETF, which helped establish the Australian fund manager. Prior to TA’s investment, company management held 46.5% of BetaShares, while unnamed private investors owned 2.5%.

“Looking at the decade ahead, we have a vision for the company to continue developing into a leading, independent Australian financial services business, offering a wide range of quality solutions to help our clients reach their financial goals,” said Alex Vynokur, founder and CEO of BetaShares.

Vynokur is an investor in BetaShares through Apex Capital, a venture capital firm he established with three colleagues. Apex has investments in a range of financial services businesses. According to ETF Stream, it rents out staff to BetaShares. The publication added that BetaShares has invested heavily in building market share and now commands a revenue run rate of almost A$80 million, second only to Vanguard in Australia.

“We believe that BetaShares’ sharp focus positions it to take advantage of significant opportunities in the market, particularly as the broader financial services industry is undergoing a period of disruption and change,” said Ed Sippel, head of Asia Pacific at TA. He added that growth initiatives are likely to include acquisitions and strategic investments.

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• Topics
• Australasia
• Financials
• Buyouts
• Australia
• Financial Services
• TA Associates