Non-major takes further stake in broker channel

by 22 Nov 2013
Macquarie Bank Limited has acquired a 25 per cent stake in aggregator Connective.

Connective principal Glenn Lees says he is “delighted” at the opportunities the new alliance presents.

“Over the past four years Connective has grown considerably. The time was right to seek a strategic alignment with a major financial services organisation. We strongly believe that Macquarie’s investment strengthens our leading platform and marks the start of our next phase of growth.

“We devote considerable resources to assisting our members to operate more efficient and profitable businesses, and Macquarie’s investment will open up many new avenues to further support our brokers in their success.”

The move also marks further expansion into the broker channel for Macquarie, which recently announced plans to double its share in the Australian mortgage market to return to pre-GFC levels.

The bank currently has a nearly 20 per cent investment in Homeloans Ltd, a 10.5 per cent share in Yellow Brick Road and a minority shareholding in Vow Financial and AFG.

Established in 2003, Connective is now one of the largest independent aggregators in the industry, with over 1,900 member brokers and a loan book in excess of $47bn.

Despite the banks investment, Lees says Connective will continue to operate as before.

“For our members, it’s business as usual. Murray, Mark and I are still working in and on the business and our service proposition and commitment will not change."

COMMENTS

  • by Not Happy 25/11/2013 10:04:02 AM

    So....Another independent aggregator has bitten the dust....I was originally with Fast and chose to move to Connective because I was not happy about having my business "sold" to NAB and I got nothing out of it.....In fact this is exactly part of the sale pitch to me me from fast to Connective (the whole independence aspect). Now it seems like its going to happen again. Connective (and all aggregators in general) are built on the backs of hundreds of brokers like me who are out there slogging it every day to build my business, yet they get to "sell" me and make a fortune......This is now the second time i've been sold and to date have not seen a dime from those sellers. Glenn, Murray & Mark - to whom do I send my invoice to for my % return now that you have sold 25% of my business to line your pockets. Time to move to another independent aggregator and I wonder how many others are feeling just like me.