Fairstone Group  

Fairstone adds £135mn with Cumbria IFA purchase

Fairstone adds £135mn with Cumbria IFA purchase
Fairstone chief executive officer Lee Hartley

Fairstone has bought Cumbria-based IFA Financial Concepts, adding more than £135mn to its funds under management.

Financial Concepts, located in Carlisle and established in 2000, is a chartered independent advice firm specialising in pensions and investments.

The deal brings more than 1,700 clients to the group, as well as 10 advisers and staff.

Principals Darren Turnbull, Anthony Phillipson and Nigel Shackleton, have also decided to join Fairstone. 

The firm joined Fairstone’s downstream buy out acquisition model in December 2019.

Since then, Fairstone said it has already seen more than a 7 per cent increase in revenue and 6 per cent increase in clients.

Turnbull said: “We are delighted to join Fairstone as we feel that this will enhance the offering from our business as we move forward, providing long term continuity to our clients while giving our staff the chance to progress in their careers.

“Thanks to the support offered by Fairstone, we are looking forward to growing further as a business and being fully focused on providing the highest level of professional advice and guidance to our clients for the next 20 years and more.”

Now fully acquired, Financial Concepts will receive ongoing support to grow further and receive long-term value through Fairstone’s five layered proposition, which provides the potential for firms to effectively double the market value of their business.

This latest purchase of Financial Concepts is the fourth announced so far this year. Fairstone said it has “several more deals in the pipeline” as the group further expands its acquisition strategy.

Fairstone chief executive officer Lee Hartley said: “Financial Concepts struck us as a forward-thinking firm, made up of a high-quality team who share our commitment to totally independent, client-centric service. The firm has a great reputation for serving clients over many years and is a great addition to the Fairstone family.

“They joined us at a rather difficult time as it was a couple of months before we went into lockdown with all the challenges that presented, but we worked closely with the team throughout the integration phase to provide the support and framework to grow the business.”

Hartley added: “Our acquisition strategy remains firmly focused on bringing in quality, ambitious firms such as Financial Concepts, who want to join us and be supported to grow with us, delivering long-term organic growth.”

In April, Fairstone added two new features to its downstream buy out model as the consolidator claimed many of its 50 acquisitions are “exceeding their target sale values”.

The changes include a profit share programme, which gives acquired firms the potential to pay out between two to three times annual salary over a rolling five-year cycle, and gives IFA firm principals capital to acquire local firms themselves.

In February, Fairstone secured its 50th acquisition with its purchase of Sidmouth-based East Devon Associates for an undisclosed sum.