DL Holding Group Co., Ltd. (1709. HK) recently announced an investment of USD 8 million (HKD 63 million) to acquire 45% equity of its affiliated company DL Family Office (HK) Limited and 100% equity of Emerald Wealth Management Limited for USD 2 million (HKD 15.5 million) both in cash, totaling USD 10 million (HKD 78.5 million).
DL Holding reported a rapid growth in revenue and net profit in recent years and its securities and investment businesses have gained remarkable results. Especially at a time of huge market fluctuations and increasing uncertainty. Acquiring the family office business with a more stable and consistent business model will not only rapidly expand DL’s asset management business, scale and the scope of services, increase the number of ultra-high net worth clients, but also will help to create synergies for the investment banking business. The acquisitions will also bring a strong, stable and more sustainable driving force into its Impacting Investing Strategy.
DL Family Office (DLFO) was established in 2012 and is one of the earliest and most successful multi-family offices in Hong Kong. Headquartered in Hong Kong, DLFO covers mainland China, Singapore, North America and Japan. At present, the total AUM is about USD 1.22 billion (HKD 10 billion). The revenue in 2021 was USD 3 million (HKD 24 million), an increase of 60% over the previous year. The overall assets under management increased from USD 371 million (HKD 3 billion) in 2019 to USD 1.22 billion (HKD 10 billion) in March 2022. The company is licensed by HKSFC to engage in Type 4 and Type 9 regulated activities, which can provide ultra-high net worth clients with series of financial services such as asset management, family constitution, residency planning, impacting investment, insurance services, charitable funds, education and health consulting. The core team of DLFO comes from internationally renowned private banks, investment banks and wealth management institutions, with more than 20 years of experience on average.
Emerald Wealth Management Ltd. (Emerald) is committed to providing customers in Greater China with a full range of wealth management and lifestyle services and consulting. It holds the license of the Hong Kong Association of Professional Insurance Brokers (PIBA). At present, it has served nearly 500 groups of wealthy families, with a total annual premium of USD 9 million (HKD 70 million) in 2021. At the same time, Emerald provides one-stop services to wealth management institutions and independent financial planners, including product training, pre-sales and after-sales insurance support, etc.
In 2022, DL Holdings Group has successively invested in Atlas Multi-assets Capital, signed a strategic cooperation agreement with YF Life, and began the distribution and business cooperation with Harvest Global Capital Investments to accelerate the expansion of its business channels and product categories.