Hamilton Locke has advised Scarcity Partners (Scarcity) on the acquisition of a 30% stake in Evidentia Group (Evidentia).
Led by former Pinnacle executives Adrian Whittingham and Alex Ihlenfeldt, Scarcity is a newly established private equity firm looking to bring the highly lucrative ‘GP staking’ model to Australian shores. The GP staking model adopted by Scarcity is an ‘evergreen’ investment strategy, which involves taking a minority interest in wealth and asset management firms. This allows founders to maintain strategic control while utilising the vast expertise and experience available at Scarcity to accelerate growth.
Evidentia is a fast-growing asset management firm, with offices across Sydney, Brisbane and Melbourne. Evidentia manages $8 billion in assets for a selection of leading private wealth firms in Australia.
Commenting on the transaction, Hamilton Locke Partner Gordon McCann said: “It was a pleasure to assist Scarcity Partners on its first acquisition and to see the GP staking model taking a foothold in Australia. Scarcity Partner’s investment strategy will undoubtedly peak a great deal of interest in the Australian market, and we look forward to seeing its continued growth well into the future.”
The team at Hamilton Locke was led by Partners Gordon McCann and Erik Seito and included Senior Associates Julian Ilett and Nicholas Pavouris and Lawyer Matthew Dean.
