Investments  

Adviser consolidator to be acquired by US giant

Adviser consolidator to be acquired by US giant

Harwood Wealth, an advice firm which has engaged in a spree of acquisitions in recent years, is itself being taken over by a private equity firm in the US.  

In a stock market announcement this morning, Harwood Wealth Management confirmed it has been approached about being acquired, and the directors of the company are recommending that shareholders accept the offer.

The offer is from a newly created company, which is funded by US private equity company Carlyle. 

As part of the announcement, Harwood disclosed that it expects to report revenue of £33.6m for the year to the end of October 2019, an increase on the £32.7m of revenue it reported for the previous year.

The company, which is listed on the Alternative Investment Market, has acquired more than a dozen advice firms in the past two years, including Andrew Routley Pensions in December 2019, and in its statement to the stock market confirmed that is has agreed to acquire a further four firms. 

Alan Durrant, the company’s chief executive, told FTAdviser in June 2019 that the main focus for his Hampshire-based firm when seeking acquisitions was that the businesses it acquires have recurring revenue, as this provides predictability.  

At the end of April 2019, the company had assets under management of £5.3bn.

In order for the acquisition of Harwood by Carlyle to proceed, shareholders representing 75 per cent of the equity in Harwood must agree. 

The shareholder vote will happen on February 12.

Members of the board of directors of Harwood own just over 66 per cent of the company, and all of those board members have irrevocably agreed to back the takeover. 

david.thorpe@ft.com

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