Equistone Partners Europe has completed a £50m buyout of Liverpool-based financial advice firm Wealth at Work.
The company, which was previously owned by Palatine Private Equity, provides financial education, regulated advice and wealth management services designed for the workplace.
The buyout is Equistone’s first UK investment from its Fund V which closed at €2bn (£1.42bn) in April.
Steve O’Hare, a partner at Equistone, said: “Regulatory change and increased pressures for employers to boost engagement with staff is driving demand for services at Wealth at Work.
“Pension schemes can be highly complex and given the new flexibilities and choices, it is more important than ever that employees are guided in the right direction.
“The business is well placed for continued organic growth and we will also look at strategic acquisition opportunities over the coming months.”
Equistone will take a minority stake in the business and Palatine, which has achieved a 3.5x return on investment, will co-invest for a minority stake along with the management team.
David Cassidy, chief executive of Wealth at Work, said: “This new significant investment into Wealth at Work will allow us to continue to grow quickly and therefore meet the rapidly increasing demand for our services which are now used by a number of the largest companies in the UK.
“I very much look forward to working with Equistone and further developing our offering to our clients, delivering innovation and setting new standards of best practice.
“We would also like to take this opportunity to thank Palatine for the support they have provided so far, and we look forward to continuing our work with them as we take our business to the next chapter.”
Wealth at Work, which employs more than 120 people, works with many FTSE employers such as Marks & Spencer as well as a number of leading financial services companies.
It was established in 2005 and was initially backed by Palatine in 2011.
Last month Steve Harris, chief executive of Committed Capital, said he has been investing EIS funds into the financial advice sector.
