Australian Finance Group (AFG) has deepened its push into equity participation with a minority investment in Perth-based Capita Finance Group, as dealmaking across Australia continues to gain traction. AFG's minority stake in Capita marks its sixth transaction under the Broker Investments program, which launched in late 2024.
That expansion follows AFG strongest March quarter on record, with brokers lodging 40,784 mortgages worth $29.54 billion amid resilient borrower demand.
Capita, founded in 2013 as part of Realmark Group, has grown into one of AFG’s strongest-performing broker groups in Western Australia, operating an integrated property and finance model that services clients across the real estate cycle, AFG said. Under the new arrangement, ownership shifts fully to Capita’s existing broker cohort, led by Managing Director Adam Donald, while AFG takes a minority, non‑controlling stake.
AFG Chief Executive Officer David Bailey (pictured) said the deal fits squarely within the group’s strategy to back scalable, broker-led platforms.
“Capita is exactly the kind of business we’re focused on supporting: a high-performing brokerage with a strong foundation and a clear runway for growth,” Bailey said. “We see a real opportunity to work with the team as they take the business into its next phase.”
AFG’s Broker Investments program is structured to inject capital and strategic support into selected groups while allowing them to retain their own brands and day‑to‑day control. The initiative is aimed at brokers seeking funding for expansion, succession planning solutions, or ways to crystallise long‑term value without exiting their businesses outright.
The Capita deal follows earlier investments in Empower Wealth Group, Lifespan Mortgage Services, Loan Path Finance, TS Finance Broking, and asset finance specialist Network Finance, spanning Western Australia, Victoria, New South Wales, and Queensland.
Bailey said the growing portfolio shows the model is gaining traction among aggregation clients looking for deeper partnerships. “With six investments completed, and additional investments made by these groups, we’re seeing the program build,” he said, highlighting shifting market dynamics and increasing demand from brokers for aligned capital partners.
Outside of AFG, consolidation across Australia continues to run hot with no signs of cooling anytime soon.
In 2025, global M&A deal volumes reached roughly $7.46 trillion AUD, (or $4.81 trillion USD), up from $5.27 trillion AUD, (or $3.4 trillion USD), the year before, according to MergerMarket data. That's an increase of nearly 42%. And the Australian markets, while smaller, still kept pace.
In 2025, publicly-announced deals to buy or merge with companies that are based in Australia reached $143.8 billion AUD (or $92.8 billion USD), according to Dealogic.
Examples can be found throughout the market. On Tuesday, Australian private equity firm Recludo Group, which works by partnering with firms in the broking space to help them scale, revealed that it had acquired a majority stake in its eighth firm since launching in mid-2024.
Tim Brown, chief executive officer of Recludo, said higher interest rates and global uncertainty may actually be fueling momentum in the M&A market.
"That uncertainty brings people to a process where they start to think, what does the future hold for us? Is there a better way of doing this? Does Recludo offer some security in the sense of what we bring?" Brown told Australian Broker.
Kellie Ell contributed to this report.
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