AFH Financial Group has acquired the assets of Northampton-based Hindsight Financial Services Limited, the company’s 10th acquisition since the introduction of the Retail Distribution Review and its third since listing on AIM in June.
In addition, the firm has announced the purchase of the client bank of Cardiff-based Jeff Seward & Partners for up to £45,000, which it said is part of the strategy of buying sole traders who wish to retire and exit the industry.
The deals immediately added £15m in assets, bringing total funds under management to £840m and total adviser headcount to 136.
The double-buyout follows hot on the heels of the firms firm Scottish acquisition in July, shortly after the firm upgraded its listing from the ISDX small-cap exchange, when it took on Edinburgh-based Finlay Gow & Company Ltd for a total consideration of up to £675,000.
In an exclusive interview with FTAdviser in August, AFH chief Alan Hudson said the pace of consolidation in the IFA market is set to speed up markedly as the post-RDR world is too much for many.
He said that while some businesses got through RDR “the principals of those businesses are beginning to realise the enormity of the task ahead, recognising they’re sub-scale”.
Mr Hudson added that it is difficult to get hold of capital, and “as a result are looking to crystalise some value and join a business where there is some certainty for the future”. AFM itself raised £3m to fund further acquisitions through its Aim listing in June.
Commenting on the latest additions, Mr Hudson said: “Today’s transaction sees further geographical expansion of the AFH brand and continues to underpin the board’s strategy of growing the business both organically and through select and opportune acquisitions.”
