South Tyneside wealth manager Fairstone has acquired a Surrey-based business, adding more than £450m in funds under management to the group.
The Boldon business has snapped up Epsom-based Mantle Financial Planning, a deal which CEO Lee Hartley said boosts the group’s strategic growth plans and geographic footprint. Principals Colin Caulfield and Clive Shaw said they joined Fairstone to get support in dealing with the growing difficulties of being a medium-sized operation directly regulated by the FCA.
The company specialises in financial planning for high-net-worth individuals in one of the country’s most affluent counties and the acquisition brings 11 advisers and 16 staff into the group, as well as more than 2,000 clients. Mantle joined Fairstone’s Downstream Buy Out (DBO) acquisition model in June 2020. Since then the business has used Fairstone’s support services to grow to deliver a 7% increase in client numbers and a 20% increase in new business revenue growth.
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The firm will continue to receive support post acquisition to grow further and unlock additional opportunities, including a secondary capital event, through Fairstone’s proposition, which gives firms the potential to double the market value of their business.
Mr Caulfield said: “Joining Fairstone was the right decision as they are an independent, Chartered, national firm which is not just interested in the client bank, but the company as a whole. We all look forward to becoming a full part of the successful Fairstone Group and firmly believe this will be in the long-term best interests of both our clients and the company.”
Fairstone’s DBO model integrates Institute of Financial Accountants firms into the group, before final acquisition.
Mr Hartley said: “Mantle Financial Planning is a quality firm with first-class individuals, who share our dedication to exceptional service and are committed to long-term organic growth, making them an excellent addition to the Fairstone family. We have supported their growth through the integration phase, which is borne out in the increase in revenue and clients they have seen over the past two years.
“This demonstrates the unique strength of our acquisition model in that it gives firms the opportunity to be supported on a variety of levels to grow and maximise profits ahead of a sale, at a time determined by the business owner, safeguarding business value even during periods of market downturn.
“In simple terms we act as an investment partner for businesses joining us, providing the centralised resource, technology and capital to support sustainable growth ahead of a sale, making a real impact on profits and valuation. I am delighted to say we go into 2023 in an extremely strong position and look forward to announcing further expansion within the group.”
Fairstone has over 40 locations across the UK overseeing £13bn funds under management for over 45,000 wealth clients.
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