Fairstone has acquired West Yorkshire-based Utopia Financial Planning, adding funds under management in excess of £100m.
The deal brings an additional 800 clients into the group together with Utopia’s four advisers and six support staff.
Based in Liversedge, West Yorkshire, Utopia is a whole-of-market advice firm specialising in advice and management of investment and retirement portfolios.
In an update today (July 7), Fairstone said it had acquired the firm via its downstream buy-out model.
Commenting on the deal, Lee Hartley, chief executive officer of Fairstone, said: “We are delighted to complete the final acquisition of Utopia Financial Planning. They are exactly the kind of robust firm we are looking to join Fairstone and grow with us.
“Our experience shows that culturally aligned firms are the most profitable and successful in the long-term. Ray, Darron and the team at Utopia place clients at their core and their commitment to first class service makes them an excellent fit for us.”
This latest acquisition comes as last week (July 1), Fairstone acquired Belfast-based ASM Financial Planning, securing funds under management in excess of £250m.
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.
Following this, in March, the wealth manager acquired Glasgow-based Chartermarque.
Hartley said: “Fairstone partner with high-quality firms who we can invest in and support their progression before acquiring those businesses in future years.
“Our approach is the exact opposite of the traditional ‘consolidator’ model and our underlying numbers – from client satisfaction and client retention through to earn-out performance – fully back this up.”
The downstream buyout acquisition model integrates IFA firms into the group, typically over a two-year period, prior to final acquisition.
While the above firms have been acquired, in June Fairstone added Nottingham-based James Ryan Thornhill to its downstream buy-out model in a move that added 1,000 clients to the group.
Last December Fairstone had agreed its ninth deal of last year under the DBO model, incorporating Devon-based Sabre Financial.
At that time, the wealth manager had added more than £1.3bn to its funds under management.
Fairstone said following the integration phase, partner firms are supported to optimise their business performance before crystallising a sale of their business.
The group said the vast majority of companies that have successfully reached the ultimate acquisition stage demonstrate continued organic growth and a higher valuation than expected at the outset of the journey, with firms commonly exceeding their original aspirational sale value.
On average, the firms Fairstone has acquired receive 111 per cent of their total earn-out value, it said.
Hartley added: “Within Fairstone, we invest in forward thinking IFA firms to optimise their capital value, providing the framework they need to significantly grow their business, without compromising on client service or independence.
“We are delighted to have Utopia on board, marking another valued addition to the Fairstone family.”
Utopia Financial Planning Principals, Darron Whitehead and Ray Garnett, said the Fairstone proposition appealed as it provided continuity and long-term reassurance for clients and staff for years to come.
Whitehead said: “Fairstone share our client centred ethos as well as our commitment to providing first class service, while remaining independent.
“We have always strived to provide the best possible service for our clients, and we are very confident that the acquisition with Fairstone will enhance the relationship and services our clients have come to expect.”
Garnett added: “We are very proud to become part of the Fairstone family, who will help us to look after our clients and their families for generations to come.”
sonia.rach@ft.com
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