With plans to purchase another super fund, Student Super will now close it’s cap raise in 48 hours, on May 12 at 5pm, bringing forward the planned May 31 close date.
The $3m round has all ready attracted $3.3m. The board has now agreed to accept oversubscriptions up to $3.5m.
CEO Andrew Maloney said “As a mandatory product, super is recession proof – and that has attracted investors. But in this environment, we didn’t expect the round to happen so quickly. We have had a lot of applications from SMSF’s looking for a high-growth opportunity in what looks like a bleak economic environment in the next few years. Even in a recession, superannuation revenues grow.
“This transaction makes a lot of sense – it combines two small funds – one with a lot of members, but a small amount of FUM, and the other is the reverse – a lot of FUM and few members. Only one management team is required to run both, so a lot of costs come out of the combined businesses.
“This transaction leap-frogs us forward. In a few weeks we will be where we thought we’d be in a few years, just growing organically. We will now be profitable in 18 months, instead of four years.” said Andrew.
Student Super will accept investment applications up until 5pm May 12.
Student Super is one of the fastest growing super funds in Australia with 25,000 members and $14.7m funds under management. After the transaction, the combined group will have 27,000 members and $85m funds under management.
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Student Super is the fastest growing superannuation fund in Australia;
- 4,000 members in 2018.
- 22,000 members in 2019.
- 55,000 members expected in 2020.
Student Super takes the same business model as the largest funds – acquire members when they are young. Yet these funds now focus on their older, wealthier members.