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Five firms recruited for Succession’s wealth arm
Succession could seek an initial public offering or private equity investment once it reaches its target of £7bn funds under influence, its chief executive has said.
Speaking at the Succession annual conference in Bovey Castle, Devon, Simon Chamberlain said there was no set date for this but claimed he already had received interest from private equity firms.
He said: “Our aim is to be sitting with £7bn generating £70m to £80m of recurring income.
“We will have a valuation of £500m. This could be realised through an IPO or private equity. We will go for whatever is best for our shareholders at the time.”
Mr Chamberlain said in May 2009 he wanted to gain 85 member firms with a minimum of £7bn in assets by 2015.
He said: “Succession had reached this point earlier and was ready to create a national entity as well as Succession Financial Management to provide transactional products such as mortgages and protection.
“I always said at a certain point we would need to start buying businesses.
“The transitioned businesses will have access to a huge amount of capital – it is open to others too.”
This announcement came as he named the first five firms that will form a national advisory arm of the business in April.
Mr Chamberlain said the businesses would be the founders of Succession Wealth Management, an investment focused proposition.
The member firms, which have achieved credentials concerning assets, compliance and technology, are London and Buckinghamshire-based Smart Wealth, Glasgow-based Campbell Dallas Financial Services, Buckinghamshire-based The Financial Management Group, London-based Westminster Financial Planning and Devon-based Westpoint Financial Consultants.
Mr Chamberlain said the firms will undergo a 21-month transition while the value of the business was built up to prepare for others to join.
Alan Webster, adviser for Campbell Dallas Financial Services, said: “The IFA sector is a cottage industry. It is scattered all over the place. It is good to have the technological and compliance support of a national organisation.
“Clients appreciate being able to access a local business that is part of a national proposition.
“We have been on the acquisition trail ourselves, but the support of Succession will make it easier to purchase firms and bring in more advisers.”
