Australia’s wealth management and broking industry has seen some big recent changes as competition heats up.

Within that environment, two deals in Perth this month highlight the strategic importance of the WA market.

Last week, Canaccord Genuity confirmed it will acquire Patersons Securities, the 116 year-old Perth broking house in a $25 million deal.

That was followed by the announcement that global advisory firm Shaw and Partners is set to acquire DJ Carmichael, the WA-based wealth management business with around $650m under advice.

Shaw and Partners co-CEO Earl Evans highlighted the importance of building a presence in the resource-focused WA economy.

“The western seaboard is an obvious growth area for us. Securing critical mass in WA will broaden our reach and allow more clients to access Shaw and Partners’ investment capabilities and intellectual capital,” he said.

Shaw has a global footprint following a recent deal with Swiss private bank EFG International, in which EFG purchased a $61.2m stake in Shaw for $61.2m.

Speaking with Stockhead, DJ Carmichael CEO Davide Bosio added that partnering with Shaw will provide a stronger platform to gain market share as the major banks exit the market.

“In terms of the macro environment, after the royal commission there’s been a major move away from wealth management by the banks,” Bosio said.

“So that’s one of the key reasons we’re doing this, and it’s why we’re excited because Shaw are keen to go after that part of the market.”

Shaw’s head of business development, Victoria Macarthur-Stanham, said the company is focused on Perth as the next key market in its growth strategy, with the firm already having grown funds under management from $6 billion in 2015 to $17 billion across the major east coast capitals.

In comments to Stockhead, Macarthur-Stanham said that with Shaw’s national footprint now more established, “it’s only natural that the focus shifted to Perth”.

That being said, Shaw isn’t a complete newcomer — the company has had operations in Perth for more than six years. However, “the timing was right to enter into this deal as it affords us the opportunity to expand our national footprint”.

In addition to wealth management, Macarthur-Stanham said Shaw plans to establish research and corporate advisory services in the WA market.

“Given WA’s tilt towards resources, it makes sense to have headcount on the ground to service this demand. We’re committed to providing the greater WA market with a holistic financial services offering,” she said.