Fairstone has grown fast, recently announcing the 100th partner firm to join the business as it reaches £20bn of client assets under management. Its innovative Downstream Buy-Out (DBO) model has played a major part in that success. We spoke to CEO Lee Hartley and Chief Development Officer Steve McNicol to find out what’s changing and why.
Why change a model that's clearly working?
Lee Hartley: We're aiming higher - £40bn AUM – and we want to get there faster. To do so sustainably, we need to improve how we support firms. The market's tougher now: more regulation, rising costs, more pressure. Updating our DBO model gives firms more flexibility, better deal terms, and rewards based on growth and client outcomes. It's built to help ambitious, high quality firms thrive long-term.
What makes the DBO model stand out?
Steve McNicol: It's about partnership, not purchase. We start with a minority investment and help firms grow using our resources and support. Owners stay in charge. When they're ready for a full sale, it's based on real growth and often worth way more than they initially expected.
Any real-world results?
Lee Hartley: Absolutely. In the last two and a half years, we've done 34 DBO deals, brought in 187 new advisers, and completed 13 full acquisitions.
How is Fairstone different from traditional consolidators?
Steve McNicol: We are integrators, not consolidators – we don't just buy and cut costs. Consolidators often strip value. We invest in firms, help them grow, and share in their long-term success. Our model keeps advice quality high, puts clients first and lets firms keep their identity. It's about sustainable growth, not short-term gains.
What kind of firms are you looking for?
Steve McNicol: Ambitious, profitable firms that want to grow, but don't want to sell right away. We're after long-term partners with shared values who want to build something lasting. The enhanced DBO model features a more dynamic valuation framework directly tied to business performance and client outcomes – firms who do better for themselves and their clients will realise greater value. It's a genuine win-win for everyone.
What was it like to achieve the 100th DBO in June?
Lee Hartley: It was fantastic – a real milestone. Richardson Premier Wealth is a high quality, trusted independent financial adviser which really looks after its clients and is firmly focused on sustainable growth, making it a perfect partner for us. However, this is very much a staging post, and nowhere near a final destination. We're determined to grow our business far beyond this point.
100 up – (from left) Fairstone CEO Lee Hartley, Paul Richardson of Richardson Premier Wealth Ltd and Fairstone Chief Development Officer Steve McNicol mark the 100th DBO at Fairstone.
Lee, you recently announced that you are moving from CEO to become Deputy Chair of Fairstone from October. Does this mean a change in strategy for the business?
Lee Hartley: Absolutely not. Fairstone will continue to focus on sustainable growth, innovation, and client-first values. The leadership transition is designed to strengthen execution, not alter direction. This is the right time, the right decision and I'm really looking forward to helping guide the business from a new seat.
Finally, what are you proudest of?
Lee Hartley: Building a model that supports great firms and helps them grow, without losing their values. We've shown you can scale and succeed while staying true to your people and your purpose: becoming the most trusted wealth management firm in the UK and Ireland.
Building on strong momentum and a focused regional expansion strategy for 2025, Fairstone's enhanced DBO model is poised to remain a cornerstone of its growth, offering a compelling alternative to the traditional consolidator approach.
To find out more about Fairstone's DBO model, contact Fairstone M&A Team Business Development Executive Euan Morris at [email protected], call him on 07425 817194 or visit www.fairstonegroup.co.uk
