BetaShares receives strategic investment from TA Associates

Australian ETF manager BetaShares, which oversees $16bn in assets, has received a strategic investment from private equity firm TA Associates.

Concurrent to the transaction, TA has acquired the shares held by Mirae Asset Financial Group and other minority investors in BetaShares.

The investment, whose financial details are unknown, will be used by BetaShares to fund expansion of its business activities.

BetaShares develops, launches and manages ETFs that are traded on the Australian Securities Exchange (ASX). Its funds cover Australian and international shares, fixed income, cash, currencies, commodities and alternative strategies.

BetaShares founder and CEO Alex Vynokur said: “Over the past 10 years, BetaShares has developed a market-leading position in the Australian ETF industry, helping democratise investing by expanding choice, lowering costs and making quality investments more accessible than ever before.

“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.”

Vynokur added that the investment by TA is an important milestone for BetaShare as it gears up for the next stage of growth.

Commenting on the investment, TA Associates Asia Pacific head Edward Sippel said: “TA has a long history of investing in the financial services industry, having previously supported the growth of a number of leading asset management firms globally, and we are honoured to have the opportunity to invest in BetaShares to help further the success of this great business.”

“We look forward to partnering with BetaShares’ management team to help further accelerate the company’s growth by leveraging its existing, highly-regarded offering, expanding its product depth, and enhancing its geographic footprint through acquisitions and strategic investments.”

Last month, TA secured a significant stake in consolidator Fairstone as part of its investment in the firm.

In 2019, the company agreed to buy a majority stake in Wealth Enhancement Group from Lightyear Capital for an undisclosed amount.