Consolidator Fairstone has received major funding from private equity firm TA Associates. Financial terms of the deal were not revealed.
As part of the deal, funds advised by TA will pick a significant stake in Fairstone.
Besides, Synova, Fairstone’s existing private equity investor, is now reinvesting in the consolidator. Moreover, existing backer Alcentra has increased the scale of the acquisition facilities available to the consolidator.
The transaction is said to offer greater capacity to support Fairstone’s acquisition activity through an enhanced capital base. The firm’s business model or buy-out programme will remain unchanged.
Fairstone has snapped up 54 firms through its downstream buyout model since 2011. Currently, it has 380 regulated advisers and 275 operational staff.
Moreover, Fairstone’s entire senior leadership are re-committing for at least another five to ten years and will invest a significant part of their capital back into the business.
TA will work alongside the leadership team of the consolidator and Synova as it begins an updated long-term plan to reinforce its position in the whole-of-market wealth advisory segment.
Fairstone Group will remain based in Newcastle with a major London presence. It will have regional offices across the UK.
Last year, the consolidator finalised ten takeovers. Deal volumes are anticipated to grow in the future.
Fairstone Group CEO Lee Hartley said: “The combined expertise and backing of TA, Synova and Alcentra means we have a deeper and wider foundation than ever before. We’ll use this foundation as a platform to do more deals with an emphasis on ambitious firms that are on a clear upward trajectory. We’re not looking to simply consolidate steady-state businesses – we want to invest in growth.”
Hartley further noted: “There are a number of new horizons for us – we want to offer a modern buy-out opportunity to ARs within networks, deploy our capital into the DFM space and also create a structure for businesses that we have already bought to perform satellite acquisitions themselves.”
Last month, Fairstone concluded the purchase of Berkshire-based advice firm Hammett and Petch Financial Planning.