Ascot Lloyd has completed the purchase of Aberdeen-based Central Investment Services, adding £761m in funds to the wider group.
Central Investment is an IFA in Scotland, providing professional financial planning and investment management services to both private and corporate clients across the region.
As part of the deal, eight IFAs as well as a team of support staff will join the Ascot Lloyd Group.
Ascot Lloyd said it has become one of the largest financial adviser firms in Aberdeen due to the deal.
Chief executive Nigel Stockton said: “For Central Investment, they are joining a business that can sufficiently alleviate the regulatory and compliance burdens smaller firms face, allowing them to increase time spent on their core role – advising clients.
“Scotland is of huge importance to us, and we are delighted to have further grown our presence here.”
Derek Robertson, managing director of Central Investment, said: “In recent years it has become increasingly challenging for regional IFA practices such as us to continually adapt to growing regulatory burdens and ever-rising costs.
"Joining with a national firm such as Ascot Lloyd, means we have the support behind us and we can continue to grow and serve our local community working with clients in the long-term as we always have."
The purchase follows the firm’s annual results published yesterday where it reported group revenue in the year was £63m, up from £51m in 2019.
Despite this however, the firm made a loss after tax of £30.5m as acquisition and financing costs came to bite.
The group saw its assets under management rise from £6.8bn to £9.4bn with Avellemy, the group’s discretionary fund manager, responsible for £1.8bn of these assets at the end of the year.
In February Ascot Lloyd said it was set to boost its acquisition plans after securing financing from investment manager Ares Management.
In today’s statement, Stockton added: “Ascot Lloyd continues to be one of the fastest growing IFAs in the UK, and the acquisition of Central Investment adds to our already extensive national footprint.
“We are extremely pleased that we have been able to continue the momentum with which we ended 2020 and our strong balance sheet means that we remain well-positioned to continue to deliver on our M&A strategy. Critically, we are continuing to identify high-quality businesses that match our culture and values.”
sonia.rach@ft.com
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