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In a move to deepen its footprint in tech-enabled financial services, Brisbane-headquartered Fortitude Investment Partners has acquired a majority stake in Adelaide-based ASF Audits, the country's largest independent self-managed super fund (SMSF) audit firm.
Whilst the acquisition was made for an undisclosed sum, a spokesperson for Fortitude Investment Partners has confirmed it sits within the firm's mandated investment range of $10-50 million.
ASF Audits' most recent filings with the corporate regulator show almost $3.5 million had previously been paid for its shares.
Fortitude reports the deal includes a capital injection earmarked for accelerating ASF’s technological capabilities, enhancing its service offering and supporting future acquisition-led growth.
"We are excited to be partnering with the ASF team for the next stage of their growth," says Fortitude managing partner Nick Miller.
"Our goal is to support them in enhancing their customer experience while playing a leading role in the ongoing consolidation of the SMSF assurance industry."
The investment firm highlights that Australia’s superannuation system is one of the most mature globally, yet self-managed funds remain a challenge for many retail investors due to cost, complexity, and accessibility barriers - a dynamic is particularly evident in the fast-growing SMSF sector.
ASF Audits Managing Director Casey McGrath describes the current moment as a "timely new era" for the 31-year-old business.
"This transaction enables ASF Audits to embark on a new phase of expansion," McGrath says.
"Our objective is to sustain our growth trajectory by enhancing our market share both organically and through acquisition. We have strong conviction in the quality of our work, and believe the more SMSFs we audit, the more assurance we can provide to trustees and the SMSF industry itself."
ASF Audits adds to a growing portfolio of companies for Fortitude, which is ultimately owned by US conglomerate Oaktree Capital Management via a Singaporean subsidiary and has deployed $360 million across 17 investments to date.
These include premium liquids business Birch & Waite Foods, in which a majority stake was sold to Quadrant Private Equity in May last year at a valuation understood to be worth more than $300 million, leaving Fortitude as a minority shareholder.
A spokesperson defines that deal as a "defining achievement" for the company as it delivered an "impressive return" to shareholders, contributing to Fortitude’s overall portfolio gross internal rate of return (IRR) of more than 30 per cent and a multiple of more than 3x on invested capital with total net capital returned to investors of $625 million.
Other realised investments include GM Hotels which was sold for $160 million in 2023, digital media and data company Shopper which was sold to Woolworths for $150 million in 2022,
Companies that remain in the Fortitude portfolio include Aura Medical Group, Active Adventures, Aged Care Decisions, Nutra Organics and Machines4U.
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