Expansion capital fund manager Bailador Technology Investments (ASX: BTI) has provided $10 million in follow-on funding to financial advice software business DASH Technology Group.
The investment is structured as a $5 million equity investment and a $5 million repayable debt facility. Bailador has increased its valuation of DASH to $25 million to reflect the additional investment.
Bailador’s investment will be used by DASH to fund its acquisition of Integrated Portfolio Solutions (IPS), announced in July.
The entire IPS team is to join the DASH business.
IPS provides technology and services to simplify administration of wealth portfolios. The company’s customers include investment advisers, family offices, financial planners and ultra-high-net-worth individuals.
Established in 2012, IPS administers investment portfolios totaling around $10 billion.
DASH seeks to provide a full range of technology to simplify the provision of financial advice.
Bailador managing partner and co-founder David Kirk said: “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. Financially, it will see DASH reach over $15 billion in funds under management and a new level of revenue scale from which to grow organically.”
In June, Bailador made an initial commitment to invest $20 million in DASH. Of that sum, $5 million is still to be provided and is scheduled to be invested in January.
Bailador has noted that DASH’s pricing earns it a small percentage point fee on the very large total of funds under administration on its platform. When funds under administration increase, the platform revenue increases. This means that DASH’s revenue should increase progressively even were it not to recruit new customers.
At its annual general meeting on 17 October, Bailador reported it had delivered a 9.2% post-tax return for the 2024 financial year.
Image: Bailador managing partner David Kirk.