Infocus has received a minority investment from Scarcity Partners, a specialist growth investor in investment managers.
Scarcity Partners said it has taken a “minority position” but did not disclose the size or financial terms, stating it reflects the “structural shift” underway in the Australian advice market.
Infocus was founded by chief executive Darren Steinhardt and his wife Stephanie in 1994 and has 150 advice firms, 270 advisers and almost $21 billion in funds under advice (FUA) and $4 billion in funds under management (FUM).
Scarcity said: “Scarcity Partners is providing long-term strategic capital to fuel sustained growth and continued investment in infrastructure, technology, investment solutions and operational capability across the Infocus adviser community.
“Demand for high-quality financial advice is growing as Australians face increasingly complex retirement, wealth and investment decisions, while simultaneously, compliance obligations, technology requirements and client servicing expectations continue to rise. Scale and sustained investment are becoming key determinants of success for independent advice businesses.”
Steinhardt said: “This is a partnership entered from a position of strength and conviction. After more than 30 years of independent growth, we believe the timing is right, the fit is right, and the opportunity is right to strengthen what we already do well and accelerate where we are going.
“Most importantly, this is good news for the advisers, advisory firms and clients we support. It gives us greater capacity to innovate; invest in better technology, stronger operating platforms, expanded capability and deeper support for our community and helping advisers spend more time doing what matters most: serving clients.”
He said Infocus deliberately sought a partner aligned with its long-term outlook and founder-led culture.
Earlier this year, it hired Phil Creswell from Count in the newly-created role of head of professional standards and Dr Ed Young as chief technology officer (CTO). It also restructured its senior leadership team in March with the appointment of Matthew Fogarty as executive general manager for strategic relationships and Hayley Briggs as chief financial and operating officer.
The funds will be used to help Infocus to prioritise enhancing platform capability, accelerating technology investment, expanding adviser support service and strengthening the long-term resilience and independence of the broader Infocus ecosystem.
Founder and managing partner of Scarcity, Adrian Whittingham, said: “Infocus has built something genuinely differentiated. It is a founder-led business with deep adviser relationships, award winning technology and a three-decade track record of backing independent advice.
“Our investment is a long-term commitment to ensuring Infocus has the capital and strategic support to keep investing in its advisers and to remain one of the defining players in independently aligned advice in Australia.”
Scarcity Partners has previously backed companies such as private equity firm Black Kite Partners, specialist mining finance manager Benwerrin Investment Partners and private credit firm Privity Credit.