AFH Financial Group has received approval from the Financial Conduct Authority (FCA) for the proposed acquisition of the firm by Cortina Bidco.

Bidco is a newly incorporated company formed for the purposes of the acquisition and indirectly controlled by funds managed by private equity investment firm Flexpoint Ford.

In January this year, Flexpoint proposed to buy the British wealth consolidator on the terms of an all-cash offer valued at $307m (£224.5m).

The offer price was increased to £231.6m by Bidco in March after the initial bid failed to yield AFH shareholders’ approval.

The acquisition is expected to be concluded following the sanction of the High Court. AFH said that a further announcement will be made once the High Court hearing to sanction the scheme is confirmed.

West Midlands-based AFH is said manage £6.2bn in funds.

The company, which has made 50 takeovers in five years,  decided to temporarily pause its acquisition strategy in 2019 due to the uncertain political and economic landscape.

The acquisition by Flexpoint is anticipated to help AFH regain its growth trajectory and provide it with several other strategic benefits in areas including digital marketing and systems investment.

While announcing the bid in January, the consolidator said the partnership with Flexpoint will assure the successful delivery of its growth strategy and unlock the full potential of the group over the long-term.

Flexpoint specialises in financial services and healthcare sectors, with expertise in both minority and control structures throughout the private and public companies.

The firm has raised over $4.3 bn in capital and has made more than 30 investments since 2005.