Always thought this could get a bidGrant Hackett’s GDG couldbe...

Always thought this could get a bid

Grant Hackett’s GDG couldbe in the crosshairs
The Grant Hackett-led Generation Development Group is rumoured to be in thetakeover crosshairs as consolidation in the funds management sector starts to warmup.Sources have confirmed that a suitor is running the ruler over GDG, which formerOlympian long distance swimmer Hackett has led since late 2018. Any proposal willhave to convince a who’s who of Australian investors, with almost 45 per cent of theshare register held by firms such as Ashok Jacob’s Ellerston Capital, Wilson AssetManagement and River Capital, as well as Colonial First State executive chair RobCoombe - who is also the GDG chair - and non-executive director Bill Bessemer,the former chair and chief executive of GDG’s previous incarnation, Austock.One fundie who spoke to Dataroom said GDG could be attractive, with itsestablished investment bonds business and 49 per cent stake in Lonsec providingsteady earnings and what was effectively a start-up annuities business providingpotential upside.“That hasn’t hit break-even yet but all together it would make sense - it wouldn’t bea bad one,’’ they said.GDG declined to comment on Thursday. Its most recent annual report says itincreased underlying earnings by 35 per cent over the past financial year with fundsunder management up 22 per cent to $2.6bn. The stock last changed hands at $1.49,just off its 12-month high of $1.56.