Bestinvest majority backed, private equity house 3i, has sold its stake in the business in a management buyout to rival private equity buyer Permira for an undisclosed sum.
The Permira funds will back Bestinvest’s plans to capitalise on the advice gap resulting from the Retail Distribution Review and will also help Bestinvest participate in the on-going industry consolidation, according to a statement.
Subject to regulatory approval, the acquisition should be complete in the first quarter of 2014
Peter Hall, chief executive of Bestinvest, said: “The introduction this year of the Retail Distribution Review, which has replaced commission-based advice in the UK with transparent fees, has presented Bestinvest with an excellent opportunity for both organic growth and potential acquisitions.
“With the banks withdrawing from the advice market and many investors baulking at fee levels, we are incredibly well-positioned to support investors both through our Online Investment Service, which is aimed at those who choose to make their own decisions, and our growing regional network of financial planners who can help those who do require a trusted adviser.”
Mike Covell, chairman of Bestinvest, added: “We are hugely grateful for the support that Bestinvest has received from 3i under its period of ownership which has seen the business develop very successfully over the last few years.
“As we enter the next phase in our growth, I am delighted that we do so with complete continuity of the senior management team and with the Permira funds, who we have known for several years, as our partner.”