In February, the companies had been put up for sale after the Financial Conduct Authority placed restrictions on the firms.
Two administrators from Leonard Curtis - Carl Faulds and Nicola Layland - were appointed to the Portsmouth advice firm by the High Court.
In an update today, the joint administrators from Leonard Curtis confirmed that following FCA consent, a sale was completed to Vintage Wealth Management Limited on March 9, 2023.
The combined sale consideration for both businesses was £500,000.
The FCA placed restrictions on Nexus Independent Financial Advisers and Nexus Investment Managers over concerns about £2mn being withdrawn from client investment accounts.
The administrators said their appointment was "deemed necessary" because of the sole director’s absence from the business and due to concerns relating to the director’s conduct.
Following their appointment, the joint administrators retained the remaining management team while the businesses were marketed for sale.
Layland said: “I am pleased with the outcome, as it was a difficult process, taking into account the background and the role of the FCA.
“It was important to all parties that the interests of the clients were protected as well as achieving the maximum sum possible for creditors of the two companies.
“I am grateful to the management team and staff and Moore Barlow Solicitors for their assistance in successfully concluding the sale.”
The administrators instructed Hilco Valuation Services to carry out an extensive marketing exercise.
Hilco received 60 initial enquiries, with 38 potential bidders entering into a non-disclosure agreement to enable them to access a confidential data room - established to provide potential purchasers with access to relevant information.
Seven parties engaged in more detailed discussions, including calls with the management team, and were provided additional information, resulting in four formal offers.
The sale required FCA approval, and the regulator was provided with details of all offers received and also liaised with potential purchasers.
Faulds added: “The next stage in the administration will be to identify further monies that may be recoverable for the benefit of creditors and assisting the FCA with any further enquiries into the circumstances leading to the administration.”
sonia.rach@ft.com
What do you think about the issues raised by this story? Email us on ftadviser.newsdesk@ft.com to let us know
