Australian investment banking giant Macquarie has taken a near 20% stake in fee-based IFA Paradigm Norton Financial Planning as it continues its bid to extend its UK reach.
The bank, which launched a wrap proposition to the UK market earlier this year, says it has invested in a "progressive" business well placed to thrive in a changing financial advice landscape.
Bristol-based Paradigm Norton, which boasts a 27-strong adviser force, says the link-up will ensure the company remains well-capitalised in the build-up to 2012 and enable it to pursue expansion plans by acquiring other financial planning firms.
Barry Horner, CEO of Paradigm Norton, says the company intends to acquire three fee-based firms - one small, one medium, one large - by 2014.
"In developing our growth strategy, we quickly realised the opportunity for us to find a partner that could not only provide additional investment capital but also had the relevant skills and experience in growing financial planning businesses that we could tap into."
Macquarie pledges the existing Paradigm Norton directors will retain full responsibility for ongoing management and strategy.
"This is an excellent opportunity for us to invest in an established and progressive business that is well placed to take advantage of the anticipated growth in the demand for quality financial planning services," Jason Huddy, head of Macquarie's Banking and Financial Services Group in the UK, says.
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