Fairstone has added a Nottingham-based financial planning firm to its downstream buy-out model in a move that brings 1,000 clients to the group.
James Ryan Thornhill — which is based in the East Midlands— has joined Fairstone's model, where the consolidator takes a stake in an advice firm before integrating it typically over a two-year period and then purchasing it.
Alongside the clients, the deal will see five advisers and eight support staff join the wider business as well as gross annual fee income of around £1.2m and funds under management of over £160m.
Lee Hartley, chief executive officer at Fairstone, said: “We are delighted to welcome James Ryan Thornhill into our downstream buy out programme.
"The team at James Ryan Thornhill are committed to building quality long-term client relationships and their focus on quality advice and superior service is exactly what we are looking for in a business.”
By early December Fairstone had agreed its ninth deal of last year, incorporating Devon-based Sabre Financial via its acquisition model.
At that time, the wealth manager had added more than £1.3bn to its funds under management.
This year it finalised the purchase of Hammett and Petch Financial Planning which secured more than £60m in assets for the national wealth manager in its first deal of the year.
The Berkshire-based firm first joined Fairstone via its downstream buy-out model in 2017 and added two advisers to the business.
Following this, in March, the wealth manager acquired Glasgow-based Chartermarque.
The latest deal with James Ryan Thornhill marks the start of a phased pre-acquisition process, which will also enable both firms to fully align in terms of culture and systems.
James Ryan Thornhill specialises in pension planning and investment management and will also be able to access the regulatory, technical and operational support via Fairstone during the DBO programme.
Del-Ryan Rafter, company principal at James Ryan Thornhill said it had taken the decision to join Fairstone to provide “reassurance and long-term continuity for our clients”.
“Of the various firms that we had discussions with, Fairstone stood out and the feeling of being part of the Fairstone family particularly appealed,” he said.
“Since partnering with Fairstone we are enjoying the best of both worlds; being able to provide business as usual to our clients whilst having the support of a major national Chartered IFA firm.”
sonia.rach@ft.com
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