Praemium's Turnaround Becomes a Takeover Question

With a reshaped board, a departed chief executive and a major shareholder calling for a sale, fund managers are weighing a cheap high net worth platform against an execution record that has tested patience.

· 5 min read

A small platform at a crossroads

The most consequential commentary on Praemium this year did not come from a results call. In October, HD Capital Partners, which describes itself as one of the company's largest shareholders, publicly called on the new board to launch an immediate strategic review and test the company's value in a sale. The intervention capped a turbulent stretch in which an activist built a stake, the board was reshaped under a new chair and chief executive Anthony Wamsteker resigned effective immediately.

The result is a stock that managers now discuss as much in terms of corporate outcome as operating performance. DMX Asset Management noted in September that many investors view the chief executive's departure as a potential catalyst for the company to be sold, while others have stepped back as the strategic narrative shifted beneath them.

The case for a sale

HD Capital's argument rests on a gap between business quality and market value. The manager said Praemium has generated double-digit organic revenue growth over the past decade, with EBITDA rising ten-fold from $4 million to about $40 million in FY27 based on consensus, while building a leadership position in the high net worth segment that significantly exceeds those of larger peers Netwealth and HUB24. HD Capital estimated the stock trades on 2.4 times EV to revenue and 7 times EV to operating profit, and said comparable transactions and standard cost synergies point to a fair price of $1.00 to $1.40 per share.

HD Capital was explicit that its view had changed. When it first invested in 2023, it believed the best path to long-term value was for Praemium to remain listed. Now, with a new board, substantial register turnover and the exit of a long-term chief executive, it argues a sale at fair value may be more attractive than another multi-year standalone journey. In HD Capital's words, “What matters today is that the underlying business is stronger than it's ever been, the stock is as cheap as it's ever been”. The manager named HUB24 and Netwealth as the most obvious acquirers, alongside legacy platform providers, wealth software players and private equity, and closed with a direct message: “shareholders are accepting bids.”

What matters today is that the underlying business is stronger than it's ever been, the stock is as cheap as it's ever been.

— HD Capital Partners, Article, October 2026

The register changes began in March 2026, when activist firm Viburnum disclosed a 5 per cent stake, making it the largest holder. Two directors were subsequently removed and Matthew Quinn was installed as chair; HD Capital noted his background includes chairing Class Software through its sale to HUB24 and chairing Bravura Solutions during a period of strong gains, and that he has already acquired 800,000 shares.

The operating story underneath

Beneath the corporate activity, managers broadly agree the operating story has improved. In February, Underwood Capital highlighted Praemium's announcement that its Technotia acquisition and advances in AI allowed it to restructure its technology team and extract $9 million of ongoing annual savings, one of the first such AI restructurings on the ASX. Forager Funds called the reduction “reasonably remarkable in the small cap world” in May, adding: “That $9 million is very meaningful to the profitability of this reasonably small business”. HD Capital said in October that the savings have been achieved and repeatedly reaffirmed as fully realised in FY27, with the new board hinting at further savings.

Flows have supported the case. Tamim Funds Management reported in April that platform net inflows rose 64 per cent year on year to $598 million in the March quarter, with Spectrum recording its highest inflows since launch, and said: “We expect FY27 to be an inflection point for the company as profitability should grow materially from the above initiatives.” Tamim also described the stock as materially undervalued at around 7 times EBITDA versus peers and suggested it could attract corporate interest. Jencay Capital, buying in September, said Praemium continues to take share from large legacy institutional platforms, particularly in the high net worth and stockbroking channels, and that its technology should be market leading once a platform rebuild is complete.

We expect FY27 to be an inflection point for the company as profitability should grow materially from the above initiatives.

— Tamim Funds Management, Monthly Report, April 2026

Where the narrative cracked

The bear case is about execution rather than the market opportunity. SG Hiscock & Company, which initiated a position in October 2025 on strong flows, exited in September 2026. It cited the departure of the Technotia chief executive within six months of the acquisition and a write-off of software assets as the group pivots to a new technology platform, saying the combination “left the recent strategic narrative looking incongruent with execution.” DMX described the FY26 result as okay but with a softer outlook for the year ahead, and Jencay noted the statutory result was messy because of restructuring one-offs and the platform rebuild.

Forager, among the most vocal supporters earlier in the year, struck a more measured tone in August, saying Praemium showed progress in its 2026 results but not yet enough to dispel the bear case, and that the coming financial year is pivotal. Asymmetric Asset Management had already exited in December 2025, after concluding the company was potentially ensnared in ASIC's response to investor losses in the Shield and First Guardian schemes.

What managers are watching next

The next chapter turns on decisions the board has yet to announce. Managers will watch whether the board responds to calls for a strategic review, who replaces Wamsteker, and whether the $9 million of savings flows through to FY27 earnings as promised. HD Capital's framing makes the stakes clear: in its view, the board has an opportunity to create significant value for shareholders in a relatively short space of time.