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December 23, 2020

Fairstone continues acquisition spree with Sovereign Wealth Management deal

By Verdict Staff

Consolidator Fairstone has purchased south west-based financial planning firm Sovereign Wealth Management through its downstream buy-out model.

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Financial terms of the deal are unknown.

With offices in Bath and Bristol, the acquired company is a whole-of-market advice firm specialising in investment and retirement portfolios.

Fairstone CEO Lee Hartley said: “We are delighted to complete the final acquisition of Sovereign Wealth Management, having worked hand-in-hand with them throughout the integration phase.

“The team are a strong cultural fit for Fairstone, with high-quality individuals who really care and put clients at the heart of what they do.”

The deal brings 1,500 clients and £1.25m gross fee income to Fairstone.

Fuelling growth through downstream buy-out model

Fairstone has carried out several acquisitions through its downstream buy-out model.

Under this model, the company typically purchases a stake in the to-be acquired firm, in order to integrate it over a two-year period, before the final takeover.

Fairstone’s ongoing buying spree

Last week, Fairstone acquired South Wales-based UskVale Financial Planning, which specialises in the management of investment and retirement portfolios.

It also snapped up Berkshire-based advice firm Chiltern House, and Lincolnshire-based MT Financial Management recently.

It followed the company’s previous acquisition of two advice firms in the UK that added £215m in FUM to its books.

In January this year, Fairstone bought Hamlyn Financial Services and Wagstaffs Wealth Management.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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