Fairstone Group, the largest Chartered financial planning firm in the UK, has completed its acquisition of Leicestershire-based firm My Wealth Management, adding £140m funds under management (FUM) to its books.
My Wealth Management, which is led by financial director Ian Morris and represents around 1,500 clients, specialises in investments, retirement and estate planning.
Fairstone finalised the purchase under its downstream buyout (DBO) model. The model sees Fairstone take an initial minority stake in an advisory business and integrate the firm over a number of years.
Fairstone has argued this helps minimise its exposure to integration risk while allowing the acquired company to "profit from their own success upon final acquisition". 22 adviser firms currently sit under this type of arrangement with Fairstone.
Morris said: "Before entering into the DBO process, we spent a lot of time assessing how we could grow our business effectively while enhancing client service and Fairstone stood out as a group with a crystal-clear vision as to what financial services should look like and how best this is delivered to clients.
"We are, therefore, extremely excited to be joining Fairstone. We believe, that by integrating into the Fairstone Group structure, we will ensure our clients will continue to receive a sustainable advice service from a modern and comprehensive client-centred proposition."
Fairstone Group CEO Lee Hartley (pictured) said My Wealth Management, "with the best interests of clients as its driving influence", was an example of the type of business Fairstone was looking to partner with.
He added: "Ian and the team take time to listen and understand their clients before presenting a holistic wealth planning solution that's driven by individual client needs, providing peace of mind and value for money.
"We look forward to an ongoing relationship with the team, supporting their marketing, front and back-office and client acquisition strategies in order to help them to grow the business."
Fairstone has made four other acquisitions in the last three months. In November it acquired Leicester-based Bankfield, adding £30m FUM and Angela Murfitt Financial for an undisclosed amount. In October it acquired Harefield-based RGA and Welsh advice firm DHD Wealth Management adding £65 and £207m FUM respectively.
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