AMMA Private Equity is working with accountants to enhance their client value propositions by providing access to unique capital raising opportunities in the market.
In most cases, AMMA has been working with accounting firms wanting to offer clients more than just traditional services, but not wanting to include a dedicated wealth management arm to their practices.
“We’re looking to be a key component of firms that really want to differentiate themselves from others in a competitive landscape and we’re looking to work with firms that are wanting to add that additional value for their client base,” AMMA Private Equity sales director Richard English told selfmanagedsuper.
“On top of that, there is convergence between accounting and financial planning at the moment, and we’re seeing more and more activity in the sector on that basis, but there are still firms that don’t necessarily want to get that tight with a planning business, but want to offer those types of services and they’re firms that will have a good referral relationship with a wealth management business like ours.”
English said the accounting firms working with AMMA had a distinct competitive advantage over their competitors due to the exclusive nature of capital raising opportunities on offer.
“On the value point, when we’re raising capital for companies the only way that retail investors can access pre-initial public offer and pre-trade sale to these opportunities is via their accountant, provided their accountant is working with us,” he said.
He pointed out AMMA worked with accounting firms mainly on an introductory basis.
“A lot of the firms we work with do not have a licence to give advice, so we are very clear to them that we have all of the investment discussions,” he said.
“So it’s an introducer relationship – it is literally nothing more than an introduction.”
He revealed AMMA was experiencing increased interest from accounting firms that were licensed to provide advice and in those circumstances the private equity manager allowed the accounting practice to decide who provided the financial planning component to the client.
“We still would like to have the direct conversation with the client about the investment,” he said.
Accounting firms working with AMMA had not only strengthened their existing client relationships, but had found the ability to allow access to new capital raising ventures had helped them win new clients as well, he said.
