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March 1, 2021

Ascot Lloyd to advance acquisitions with backing from Ares Management

By Amala Johney

UK-based financial advisory firm Ascot Lloyd has secured investment from funds managed by the Credit Group of American alternative investment manager Ares Management.

The size of the investment, which brings Ascot Lloyd’s capital for acquisitions to over £100m, was not revealed.

Ascot will use the infusion to advance its growth strategy through “more meaningful acquisitions” in the UK.

Last year, the company completed 12 takeovers, adding over £6.5m of EBITDA and increasing the group revenues to over £60m.

At present, Ascot has nearly £10bn in funds under influence and serves over 21,000 clients through 132 IFAs in 15 locations across the nation.

Ascot Lloyd CEO Nigel Stockton noted that the latest transaction significantly extends its relationship with Ares.

Stockton further said: “Their interest in Ascot Lloyd underlines the quality of our business, our strong recent track record and the significant market opportunity we believe there to be.

“We now have in excess of £100m available to invest in acquisitions in the UK market, reinforcing our position as a leading home for high-quality IFAs.”

He also said that the company will invest in infrastructure and technology across back-office and front-office with the aim of improving its relationship with clients.

Ares partner Daniel Sinclair said: “We believe Ascot Lloyd is a very well-positioned business operating in a market with positive long-term structural drivers. In our engagement, we have been impressed by Nigel and the management team.

“We believe they have a clear growth strategy and have consistently delivered against this in recent years. Ascot Lloyd is now one of the UK’s largest and fastest growing independently owned IFA firms and we look forward to working with Nigel, his team and Oaktree Capital as it continues this success.”

Other moves by Ares

Recently, Ares inked a non-binding agreement with Australian wealth manager AMP, under which it plans to create a A$2.25bn ($1.8bn) joint venture for AMP Capital’s private markets business.

Under the new proposal, Ares intends to take a 60% stake in the private markets business for A$1.35bn while AMP retains the remaining 40% stake worth A$900m.

The move comes after Ares scrapped its $4.9bn buyout offer for AMP, under which it had proposed to acquire 100% of AMP with each share priced at $1.85.

Last July, the company through its unit Ares Holdings, closed its purchase of a controlling stake in alternative asset manager SSG Capital Holdings.

In July 2015, Ares agreed to merge with Kayne Anderson Capital Advisors to form a new investment firm with $113bn in assets under management.

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