Yellow Brick Road is continuing to rationalise its activities, with the sale of Brightday, a direct-to-consumer online wealth and superannuation business.
The buyer is Pearl Funds Management. YBR said in a statement that the price was confidential, although it was immaterial to the group.
YBR acquired Brightday in 2016, as part of the development of an online wealth business.
In May, YBR executive chair Mark Bouris announced that the company would focus solely on mortgages, with a business structure consisting of mortgage distribution (the franchise network and the Vow aggregator network), mortgage servicing through Resi and mortgage funding and securitisation.
In July, it sold a 50 per cent interest in Smarter Money Investments. It sold its interest to one of the shareholders of cash and fixed income investment specialist Coolabah Capital, which is the other 50 per cent owner of Smarter Money Investments.
The sale was worth $7.5 million, with $5 million payable on completion, $2 million in 12 months and $500,000 in 18 months.
YBR has been shedding businesses for several years. In 2016 it sold Yellow Brick Road Accounting & Wealth Management to DBR Advisory Pty Ltd.
It had earlier shut down a professional services division.
Meanwhile, the company has made progress with the development of its mortgage business. Last month, it that it had done a deal with an affiliate of alternative asset manager Magnetar Capital relating to the establishment of a joint venture that will conduct a mortgage-backed securitisation business.
The securitisation business, which will allow YBR to fund its own loans, will be conducted by Resi Wholesale Funding, which is currently a wholly owned subsidiary of YBR. Under the terms of the deal, YBR and Magnetar will each own 50 per cent of Resi.
Magnetar is paying $18 million for its share. Resi will be trust manager, servicer and sponsor of the securitisation business. It will have credit approval for a $120 million warehouse facility.
Magnetar has given a conditional commitment to a further $60 million of funding.