Tatton is targeting what its chief executive Paul Hogarth calls "lonely" advice firms as it looks to expand its adviser services business.
Mr Hogarth said while Tatton was looking to buy, its focus was on the discretionary fund management (DFM) sector rather than the advice profession.
Instead of buying advice firms, Mr Hogarth said he was keen to sign them up to Tatton's support services businesses.
He said: "Being a small advice firm, at a time when regulatory and compliance pressure are increasing and the investment management side still has to be done, is a lonely place."
Tatton provides compliance support and other services through Paradigm Partners and also operates, under the Tatton Asset Management brand, a DFM.
The company also owns the Paradigm Mortgage Services mortgage club which has a membership of more than 1,200 firms.
The listed group’s half year accounts, released yesterday, revealed net cash on the balance sheet of £11.6m.
Much of this was sourced from an equity fund raising and Mr Hogarth said one of his priorities was to use the cash for acquisitions focused on the discretionary fund management segment of his business.
He said: "We would be interested in discretionary fund management businesses that are sub scale. There is a lot of competition in the market, a lot of firms have a DFM proposition, but maybe have not attracted the assets.
"From a Tatton point of view, we think we have the lowest fees out there, so are happy that our margins will be protected, even if margin compression becomes a feature of the sector."
Tatton reported assets under management of £5.7bn, an increase of 29 per cent compared with the same six month period in 2017.
Total revenue for the group was £8.45m, an increase of 15 per cent.
david.thorpe@ft.com
