Clifton Asset Management's (Clifton) deal to receive investment from private equity firm CBPE has now completed, Professional Adviser has learnt.
PA understands that the investment first announced in October last year went through on Friday 28 February after the change of control on 4 February.
CBPE partnered with Clifton's management team, led by CEO Neil Greenaway who reinvested in the business alongside CBPE. The investment amount was not disclosed.
Together, they aim to drive Clifton's growth through a "combination of organic development and strategic acquisitions in what remains a highly fragmented market".
"There's only two ways you can finance business - it's either debt or equity," Clifton Asset Management managing director Anthony Carty told PA.
UK-based CBPE backed advice consolidator Perspective until May 2024. Perspective completed or exchanged on 45 acquisitions during CBPE's tenure.
"We were in the fortunate position where we had a number of interested parties," Carty said of the process of securing CBPE's backing. "For us, we chose CBPE based on its fairly extensive experience in wealth management."
CBPE looked for evidence of where Clifton has acquired firms and had a successful integration period and a "proper" investment in technology, the MD told PA.
Expanding out Clifton's pre-completion team
With CBPE's backing, Clifton will look to expand and invest in its pre-completion team.
"We've got quite a large team, and so we're fortunate in that regard in terms of integration, but what does need to be built out more is actually the pre completion team," he told PA. "There's so many moving parts to that, both in terms of the management of the legals, the due diligence etc and that effort has been resting on a relatively few shoulders, one of which is mine."
"With CBPE's backing, we can invest in that team a bit more, which, in turn, just makes the journey a bit easier for all concerned, because it's pretty stressful."
Clifton acquires seven advice businesses adding £500m AUM
This PE deal completion comes as Clifton Wealth Partnership (CWP) – part of Clifton Asset Management – snapped up seven advice businesses.
The financial planning firm has bought Capel Court, Financial Solutions Wales, Davies Craddock, Tailormade Financial Services, Absolute Financial Services, London Private Wealth, and Clifton Wealth Partnership Portishead.
The adviser businesses range in size, from one adviser to larger firms. In each case, the business owners are staying on as financial planners or will be working on a consultancy basis for two years to ensure a smooth client handover.
Based in Colchester, Essex, Capel Court has been established for more than 30 years and is headed up by planners Miles Moseley and Matthew Lammas. The firm looks after over 300 family groups.
Based in Llanelli, Wales, Financial Solutions Wales was established in 2005 and is run by Jeremy Phelps. The firm looks after 300 family groups.
"Since 2019, Financial Solutions Wales has been seeking the right partner to support the next stage of our journey. Having met with around 15 potential acquirers, it was our discussions with Greenaway and Carty that confirmed Clifton Wealth Partnership as the ideal fit," Phelps said. "Their commitment to client service closely aligns with our own values, ensuring continuity and excellence for those we advise."
Also based in Llanelli, Wales, Davies Craddock is headed up by financial planner Stephen Fry who has worked in financial services for 34 years.
Meanwhile, Bristol-based Tailormade Financial Services has been running since 2002, headed by Chris Wiggins. The firm looks after more than 100 family groups.
Financial planners Adam Fearn and David Ryan have run Nottingham-based Absolute Financial Services since 2007 and have just under 300 family groups.
Fearn said: "We spent a considerable amount of time understanding the potential purchasers in the market and Clifton stood out because they are closely aligned to our views of how clients are the central pillar of our profession and how best to provide for their needs in the future.
"We are impressed with their forward-thinking approach and use of technology to enhance the service proposition."
Established in 2001, London Private Wealth is based in the UK capital and is responsible for more than 400 family groups. The business is run by planners Thomas Richter and Rene Lans.
Originally Pure Advanced Financial Planning before becoming an appointed representative for Clifton Wealth Partnership in early 2024. The business is still run by planners Alison Davis and Adrian James, and the firm looks after more than 200 family groups.
Together, the acquisitions have added £500m assets under management and 25 team members to CWP.
‘Properly and fully integrated'
Carty told PA that these acquisitions will enable the financial planning firm to grow organically.
"There are only two shows in town - it's organic growth or it's by way of acquisition," he said.
"Organic growth is actually quite hard, I think the average organic growth figure for the industry is around 3% and if you're doing much better than that, then you're really doing well."
Carty concluded: "We're fortunate that we do have some organic growth in terms of client referrals and professional connections etc. For us, with the technology and product span that we've got, it just simply makes sense to sweat those assets. We are properly and fully vertically integrated and have been for seven years."
