CompaniesJan 22 2014

Integration is key for IFA acquirers: Chamberlain

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The chief executive of wealth manager Succession Group, said that in his experience staff at firms that have been taken on by consolidators can often “be hard to motivate once they had been paid”

What was important, he said, was that integration plans kept advisers motivated. He said: “Buying the firm is the easy bit. The difficulty is getting them to do the same things. We only buy a company that is already signed up to our platform Succession Advisory Services.”

Once a firm comes on to the platform, it is expected to satisfy strict Succession group criteria, with the owners paid only 50 per cent of the firm’s worth and the remainder transferred into an equity holding.

Mr Chamberlain recently outlined the firms’ acquisition plans for 2014, saying Succession Group was on track to double its current number of member firms to 50 before the end of 2017, and was looking to acquire 10 additional firms this year.

There is currently £1.7bn in AUM on the Succession investment platform. Mr Chamberlain said the firm was targetting £7bn in AUM on the platform by the end of 2017.

Bellpenny continues purchase streak

National advisory firm Bellpenny added to its acquisitions last week by purchasing two IFA firms with combined assets under administration of £187m, while listed advisory firm AFH Financial purchased five separate firms last year. Bellpenny bought northwest London-based Actuarial & Investment Services, and Birmingham-based IFA The Hammond Consultancy, bringing £75m and £112m in assets under management respectively. The two acquisitions are Bellpenny’s 14th and 15th to-date. Chief executive Kevin Ronaldson said: “It is pleasing to be getting 2014 off to a flying start with two more substantial transactions involving well-respected IFA businesses.