Australia’s investment and platform landscape is being rapidly reshaped by a flight to quality and efficiency, triggering a wave of innovation, consolidation, and significant corporate manoeuvres. As advisers demand greater functionality, platforms are locked in an arms race to deliver, leading to major product launches and a shake-out of smaller players. Simultaneously, the relentless search for returns is fuelling a deeper push into private markets and digital assets, attracting a surge in investor capital but also drawing the sharp focus of regulators, who are now launching probes into the burgeoning private credit sector and the role of platforms in recent product failures.
The Platform Arms Race: Efficiency and Scale Reign Supreme
The competitive dynamics of the platform market have crystallised around a single imperative: efficiency. New industry research confirms that advisers now view platform efficiency as the single most significant differentiator when selecting a provider for their business. This intense focus on streamlined workflows and seamless integration is creating a challenging environment for smaller, less-resourced players, with warnings that peripheral platforms are facing an exit threat if they fail to invest in technology and scale.
In response, major providers are accelerating their product development cycles. AMP’s North platform has launched a new model portfolio solution in partnership with global giant BlackRock and research house Lonsec, offering advisers access to sophisticated, multi-asset portfolios. Innovation is also thriving in the fintech space, with a new collaboration offering “advice-level” model portfolio capabilities, and another partnership set to deliver direct indexing solutions via the Desktop Broker platform. However, even as this innovation flourishes, the entire ecosystem has been put on notice, with ASIC revealing it is investigating the role of platforms and research houses in recent high-profile investment failures.
Private Markets Boom Attracts Investor Demand and Regulatory Scrutiny
The hunt for yield and diversification continues to drive significant capital into unlisted assets, but this boom is attracting closer regulatory oversight. Wealth managers like Escala Partners are increasing their allocations to alternatives, responding to sophisticated client demand. This trend is supported by major institutional investors, with AustralianSuper pushing back against calls for more regulation in private markets, arguing that flexibility is key to delivering long-term returns. However, some managers, including IFM Investors, have warned that economic uncertainty may impact private credit in the short term.
This growing allocation is now firmly on the regulator's radar. It was revealed this week that ASIC’s probe into the private credit market is expected to home in on the retail space, with a focus on product disclosure and target market determination. Meanwhile, the market remains active with significant transactions, including Aware Super selling its major poultry-focused agricultural business to global investment firm KKR and TelstraSuper investing in a major Australian airport.
Digital Assets Gain Ground as Corporate Consolidation Accelerates
The mainstreaming of digital assets continues at pace, with new data showing strong investor uptake of regulated products. A year after their launch, the ASX-listed Bitcoin ETFs are proving popular, with VanEck reporting its fund has grown to $290 million in assets under management. This direct client demand is occurring even as many advisers remain hesitant about crypto, creating a potential advice gap.
The investment landscape is also being redefined by a series of transformative corporate deals. The potential takeover of Insignia Financial by US private equity firm CC Capital Partners is edging closer, with the bidder now conducting due diligence. A successful acquisition would fundamentally reshape Australia’s platform and advice markets. In another significant move, private equity firm TA Associates has made a strategic investment in advice firm Viridian Financial Group, signalling strong confidence in scaled advice models. The global funds management scene was also reshuffled, with First Sentier Investors' chief executive Mark Steinberg stepping down after a seven-year tenure.
Context and Looking Ahead
This week’s events confirm and accelerate the dominant themes of 2025: the technology-driven consolidation of the platform market and the mainstreaming of alternative assets. The key developments are the sheer scale of the corporate activity, with the potential Insignia takeover promising the biggest market shake-up in years, and the formalisation of regulatory scrutiny into these high-growth areas. ASIC’s new investigations into platforms and private credit signal that the era of unbridled growth is being met with a new focus on consumer protection and disclosure.
The market will be keenly watching for further news on the Insignia bid, as its outcome could have cascading effects on platform access, pricing, and adviser choice. The results of ASIC's investigations will be critical in shaping the future of product design and distribution for both platforms and alternative asset managers.
Key Takeaways:
- For Platform Providers (Short-term, 0-3 months): Investment in adviser-facing efficiency tools, integration, and workflow automation is no longer optional but a matter of survival in a competitive market that is rapidly consolidating.
- For Asset Managers (Short-term, 0-3 months): Managers offering private market and alternative asset funds must proactively review their retail investor disclosures and target market determinations in direct response to ASIC's heightened scrutiny of the sector.
- For Financial Advisers (Medium-term, 3-12 months): Develop a clear and compliant advice framework for digital assets. With regulated, ASX-listed products now attracting significant inflows, client demand can no longer be ignored, and a documented, professional process is essential.
- For All Licensees (Medium-term, 3-12 months): Begin strategic planning for the potential impacts of major market consolidation. A takeover of a key player like Insignia could significantly alter the landscape, affecting platform, research, and product relationships across the industry.
