Succession bags £25m to buy advice firms

Succession bags £25m to buy advice firms

Succession has secured an investment package of more than £25m from HSBC and its existing shareholders, to continue its growth strategy of acquiring the best 50 firms from its affiliated membership by the end of 2017.

In the last three years, Succession has purchased 25 firms to create a national advisory business.

It currently has 50 affiliated member firms, each of which is working towards being acquired, with the investment package helping the group to accelerate its rate of acquisitions.

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Directly and through its affiliated membership, the group has £11bn of funds under management, of which more than £2.5bn is serviced through its national advisory business

Group chief executive Simon Chamberlain said: “We are at the half way point in our plan to create the UK’s largest independent wealth management business, with strong funds under management, and profitable advice and platform trading arms.

“Our proven integration and acquisition model continues to attract interest from ambitious wealth planning businesses, along with high quality individual RIs who are seeking security and recognition for their own life’s work within a supportive and rewarding framework.”

Andrew Mainwaring, investment director at lead investor Inflexion Private Equity, said the investment underlines the stability of the group’s plan.

Rhys Jones, head of middle market financial sponsors for western and Wales at HSBC, said: “Succession’s experienced and skilled management team place the company in an excellent position for its further expansion, and we have created a robust facility to support its growth plans.”

In April, Succession made its fifth acquisition of the year, snapping up a Buckinghamshire-based firm for £5.3m.

Great Missenden-based Michael Moore Life & Pensions, which has £150m of funds under management, became Succession’s 22nd acquisition from among its member firms.