How AFG’s Broker Investments Program Empowers Australian Broking Businesses

As Australia’s mortgage and finance broking sector continues to mature, business owners are increasingly navigating complex strategic considerations – from succession planning and consolidation to long-term growth and sustainability. Against this backdrop, AFG’s Broker Investments program was launched in November 2024 to support high-performing broker businesses as they plan for what’s next.

“The conversation with brokers is, ‘What’s your plan?’, because you don’t start a business to be in it forever. Let’s help you build something that’s sustainable and will survive beyond you,” says AFG Head of Broker Investments Vik Sukumaran.

The program involves AFG taking a minority, non-controlling equity stake in selected brokerages, providing tailored support that may include growth capital, strategic insight and governance expertise. Crucially, day-to-day operations and client relationships remain firmly in the hands of the business owner.

“Every brokerage will view the program differently, because we’ve designed it to be flexible,” says Sukumaran. “We take a minority position because we’re not here to run the business. Instead, we partner with owners, providing capital where needed and helping source the expertise required to execute on their priorities.”

Broker Investments is designed for high-performing brokerages seeking growth capital or an alternative succession pathway beyond traditional trail-based valuations. To date, five broker businesses have publicly joined the program: Western Australia’s Lifespan Mortgage Services; Victoria-based TS Finance Broking and Empower Wealth Group; New South Wales’ Loan Path Finance; and Queensland asset-finance specialist Network Finance. Looking ahead, AFG plans to partner with up to 35 high-calibre broker groups nationally by 2029.

Under the program’s low-touch operating model, AFG receives monthly financial reporting and participates in quarterly board meetings through a senior AFG appointee. This structure provides strategic oversight and guidance while preserving each brokerage’s independence. At year-end, AFG works collaboratively with the business owner to set the strategic plan and budget, which the owner then leads and executes.

Wondering whether Broker Investments could work for your business? The following case studies explore how the program flexes to support brokerages at different stages, with distinct goals and growth ambitions.

Lifespan Mortgage Services: Strategising succession

Founded in 1999 and joining AFG from inception, Western Australia–based Lifespan Mortgage Services has grown steadily alongside its aggregator. Succession planning became the catalyst for the business to become the first brokerage to participate in the Broker Investments program. The arrangement supported the exit of former co-director Brian Clarke, while establishing a future-looking ownership structure for his business partner, David Moore.

Under the transaction, AFG acquired a 30 percent equity stake in the business. This enabled Lifespan to appoint two new directors – both active brokers – who each hold 10 percent shareholdings, alongside Moore retaining his 50 percent stake. AFG executive Mark Hewitt also joined the board, providing strategic insight and governance support.

“The transition to retirement is a big consideration within the industry,” Moore says. “Relying on trail was never really a satisfactory outcome for us. It was important for us that the business as an entity continued, irrespective of the individual.”

AFG’s investment enabled Clarke to exit the business in a strong position “that was based not just on a multiple of trail, but on the profitability of the business,” an approach Moore says can be replicated when he, in turn, begins planning for succession.

Beyond ownership structure, Moore says AFG’s involvement has delivered broader strategic benefits, offering “an insight into industry best practices beyond our four walls.” This has influenced Lifespan’s thinking around evolving its broker remuneration model, including a shift from commission-based to salaried roles for new brokers.

The introduction of the two new directors has also injected fresh momentum into the business. Moore says their equity stakes have created greater engagement and accountability “because they’ve got skin in the game,” effectively doubling the volume of business they are writing.

Reflecting on what makes Broker Investments a strong fit for other brokerages, Moore highlights accountability as a key driver of momentum: “We’re now pushing forward, and within 12 months, it’s almost a different looking business because of what we’ve embraced.”

Loan Path Finance: Accelerating acquisitions

If Lifespan’s story is about continuity and future-proofing, Loan Path Finance’s is about acceleration.

Established in 2019 as commercial and residential finance specialists, Loan Path Finance was not previously affiliated with AFG before joining the Broker Investments program. This marked AFG’s first equity partnership beyond its existing broker network. As Managing Director Mina Gergis explains, the collaboration enabled the business to step up its acquisition phase.

“Since 2019, it’s all been organic growth for us,” says Gergis. “To accelerate that growth, we wanted to acquire certain broking businesses, and needed additional resources, infrastructure and capital. Our balance sheet was also very clean, so we felt like it was perfect timing.”

Gergis highlights AFG’s board involvement, via COO Lisa Bevan, as particularly valuable. “I think we’re a very agile business,” he says. “It’s been great to have a corporate business partner that can ground you in decision-making. Our approval for access to a capital facility has assisted us in acquiring a few businesses in a short period of time, which was part of our strategy that we first discussed with AFG.”

While Loan Path Finance had already successfully acquired smaller businesses before AFG’s involvement, Gergis notes that “having AFG as a listed business we can lean on for analytics and an extremely rigorous due diligence process has given us a lot of confidence.”

Empower Wealth: Deepening expertise and market intelligence

Headquartered in Victoria, Empower Wealth is a multi-faceted business encompassing mortgage broking, property advisory, financial planning and tax. With a team of 100 onshore staff and 30 offshore, the company’s stated mission is to create 10,000 financially free households.

Ben Kingsley, Empower Wealth’s Founder and Managing Director, highlights AFG’s reputation, market intelligence and executive insight as key factors in joining the Broker Investments program.

Kingsley says the business was already clear on its differentiation in the market as a holistic advisory practice focused on financial wellness. “We didn’t need any additional financial injection, but it was more around crafting and taking advantage of what AFG could bring to the table,” he explains. “I think it gives our team and customers the additional confidence of having a publicly-listed company behind us.” Kingsley also points to the input of Mark Hewitt on their board, who “brings a wealth of rich knowledge and expertise across meetings.”

He also notes that AFG’s investment helps Empower Wealth stay on the front foot amid increasing industry consolidation. “We wanted to be on the right side of the ledger in terms of potentially acquiring some smaller businesses and plug them into what we’re doing,” he adds.

If you’re a broker business owner navigating a rapidly evolving industry, these stories illustrate how AFG’s Broker Investments program can open new opportunities and support you through market consolidation or a successful future exit – all while keeping you securely in control of your business.

“We’re saying to brokers, there’s more to your business than just the value of your trail,” says Sukumaran. “Your IP, systems and processes are highly valuable. We want to invest in sustainable businesses that share AFG’s perpetual outlook.”

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