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Financial advice and investment management software company DASH has received another $5 million equity investment from Bailador Technology Investments (ASX: BTI) to help fund its acquisition of Integrated Portfolio Solutions (IPS), which administers $10.6 billion worth of portfolios for clients.
The announcement represents the second investment in as many days for Bailador, which yesterday bumped up its holding in volunteer management platform Rosterfy with an extra $3 million.
Bailador announced a $20 million investment in DASH in July, comprising $15 million upfront and $5 million to be paid in January 2025.
That final $5 million will still be paid next year, with the latest announcement constituting new, previously unannounced capital for the business.
In addition, the investor is providing a $5 million repayable debt facility for DASH, lifting its carrying value for DASH from $15 million to $25 million.
DASH, whose platform is used by independent financial advisers (IFAs) and financial institutions, reported 50.3 per cent revenue growth in FY24 while its number of institutional clients doubled.
Against this high-growth backdrop in DASH's quest to remove the need for multiple data entry and other manual tasks in the financial advice process, in July it entered a binding share purchase agreement to acquire fellow Sydney-based company IPS, whose team will join the business.
The acquisition announcement for IPS was for an undisclosed sum, although documents filed by the company with the Australian Securities and Investments Commission (ASIC) reveal the previous total amount paid for its shares was more than $8.4 million.
It is a move that will lift DASH's funds under management (FUM) significantly to more than $15 billion, with IPS currently servicing investment advisers, family offices, financial planners, and ultra-high net worth direct clients.
DASH is also attracted to its combination of technology and service that remove the "burden of portfolio administration and reporting as a ‘whole-of-wealth’ non-custodial platform".
"Integrated is a synergistic fit and aligns perfectly with our strategy to assist advisers and institutions deliver a cost-efficient, scalable advice offering accessible to all Australians," DASH executive director of strategy Darren Pettiona said at the time.
"Platforms should manage and report on assets in a way that provides a cost-effective outcome. Traditional platforms have struggled to effectively manage and report on non-custodial assets, akin to fitting a square peg into a round hole.
"We are unique to other platforms because we have advice software that transacts directly on our platform and without that unique value proposition many other platforms are commoditised services. To win the race and support of advisers, providers must demonstrate added value beyond basic administration."
In July, IPS co-founder Darryl Johnson described DASH as a "standout" when it came to platform technology stacks and capabilities on offer in the market.
"We know that the next ten years in the industry won’t look anything like the last ten and having the most modern, functionality rich technology on offer will position us and our clients at the forefront of that change," Johnson said at the time.
"Having access to an end-to-end suite of wealth management technology where you can use all of it, or part of, or plug in what you already use via the many integrations DASH offers, is a game-changer for our clients.
"We look forward to a long and bright future with DASH and can’t wait until we can start bringing one of the best offerings to the broader financial services and wealth management market."
Bailador co-founders and managing partners David Kirk and Paul Wilson, as well as partner James Johnstone, all sit on the board of DASH.
"DASH’s acquisition of IPS will enable it to take to market a comprehensive technology solution that serves the full financial planning spectrum from clients beginning to build their wealth through to ultra-high-net-worth investors and family offices," says Kirk.
"Financially it will see DASH reach over $15 billion FUA (funds under administration) and a new level of revenue scale from which to grow organically."
In reporting DASH's FY24 growth rates last month, albeit without financial figures, DASH CEO Andrew Whelan said the performance reflected a commitment to innovation and integration in the financial advice space.
"Our goal is to make reliable financial advice more accessible to those who need it most, and that means leveraging technology to help bridge the advice gap that continues to be a pressing concern," he said.
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