Wealth management provider Mattioli Woods has said it will be looking to make further acquisitions where appropriate and had an appetite for stockbrokers and investment houses.
The firm said it was looking to acquire businesses from different markets to compliment its existing services, particularly around discretionary investments.
Nathan Imlach, Mattioli's chief financial officer, said: "We are a small player in a highly fragmented market, we have the option of acquiring businesses that are similar to us and that is what we have done in the past.
"The only way to achieve customer retention while maintaining a suitable margin for shareholders is by doing more. If clients want discretionary equity as part of their portfolio, we wouldn’t necessarily have the resources needed to do it in house. So we would look at stockbrokers as opportunities for acquisition."
Ian Mattioli, CEO of the company, said Mattioli Woods had significant funds set aside for future acquisitions, but added this was not a "war chest".
In February the self-invested personal pension provider acquired a 49 per cent stake in specialist wealth manager Amati and has since seen its total assets under management grow from £175.7m to £325.1m at the end of 2017.
Mattioli will have the option of buying the remaining 51 per cent in the beginning of February next year, something, Mr Mattioli said, the firm "might look to do in the future".
He said: "We have a fair amount of money, but it isn’t a warchest. We acquired Broughtons Financial Planning earlier this year and continue to look for acquisition opportunities but the market is still fragmented. We do have an investment wish-list and would consider stockbrokers and investment houses.
"What we have learnt from Amati is that working in partnership is beneficial. Smaller businesses look to us for growth and stability."
Further acquisitions could also be on the cards in the will and trust planning business.
"Growing the business organically is a focus for us and we are looking towards growing the will and trust business," Mr Mattioli said.
"It is possible that we will add to that part of the business by buying something to compliment the growth."
David McCabe, director at Five Point Consulting said: "Mattioli have a good reputation and acquiring brokers seems to make sense particularly if they're looking to offer different services to clients.
"It isn't common place but it doesn't strike me as an odd decision. Mattioli has exited the defined benefit transfer market, so perhaps it is looking to make up for this by opening up a new business opportunity."
rosie.quigley@ft.com
