Netwealth has engaged business consultant Steve Prendeville to sell its Pathway compliance business, which has already received “significant” interest from potential buyers.
ifa reported recently that Netwealth decided to sell Pathway Licensee Services’ compliance business in order to focus more on technology.
At the time, Netwealth said it was planning to approach four potential buyers.
However, Mr Prendeville, managing director of mergers and acquisitions consultancy Forte Asset Solutions, told ifa there is now more interest coming through.
“What we’re looking for is the best aligned compliance services provider within the market place,” he said.
“In the original announcement, [Netwealth] said we are in discussions with four parties. Post that announcement, there has been significant interest from multiple parties and we’re entertaining parties at this time.”
Mr Prendeville said one of the reasons compliance services providers are interested is because it is typically difficult to find talented personnel.
“The biggest issue in compliance is that good people are extremely hard to find given that there is so much demand within the banks,” he said.
“It is good quality people that are staying with the [Pathway] business.”
Mr Prendeville said he expects Netwealth to enter into “meaningful discussions” with a single buyer before the end of the year.
Last month, Netwealth managing director Michael Heine told ifa that despite the changes, the company continues to be committed to the independent and non-aligned sector.
“We’ll still be running personal development days, we’ll still be doing training and education,” he said at the time.
“We are totally committed to the non-aligned space – that’s our space and that’s the space we see growing very rapidly as institutional advisers seek new homes.”