Consolidator  

Titan Wealth looking at 'strategic' IFA purchases

Titan Wealth looking at 'strategic' IFA purchases
 

Titan Wealth is planning to acquire at least one large IFA firm in the next 18 months, as it widens its offering to customers in the UK.

Andrew Fearon, joint chief executive and head of M&A at Titan Wealth, told FTAdviser the purchases are part of the firm’s plan to become one of the first client-to-custody businesses in the UK.

He said the company planned to make "one or two" strategic purchases of bigger IFAs.

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“In terms of the IFA market, we are not looking to buy small IFAs; we will make one or two strategic purchases of bigger businesses,” he said

“I’m not looking to compete with consolidators on their acquisition model because it is a crowded market.”

Fearon added the company expects to complete up to four acquisitions in the next 12 to 18 months, with two of these looking to complete in the next few months.

Launch and acquisitions

Titan Wealth launched in summer 2021 with the acquisition of GPP and Tavistock Wealth's former DFM arm, now Titan Asset Management.

The deal saw a 10-year strategic partnership agreed between the two companies, with Tavistock acting as Titan's retail distribution partner.

It then embarked on a wave of purchases, including Baggette Asset Management, Cardale Asset Management, and alternatives distribution business Haibun.

The company has developed its own in-house platforms and currently offers two, one is for DFMs and the other is an IFA wrap platform.

Titan also offers a range of its own investment solutions and products, and has recently launched a model portfolio service.

Last month, the firm announced a partnership with Maplesden Griffin & Partners, a consultancy that works with DFMs, to create a new model portfolio strategy for the international market.

“We have become a vertically integrated investment proposition for third parties,” Fearon said.

The group is targeting between £15bn and £20bn in assets under advice, £30bn in assets under management and £40bn assets on platform in the next three years.

Titan has also hired a number of salespeople to help it market its products. “We are going to aggressively target third-party distribution sales,” Fearon said.

Trends to watch

As for investing trends, Fearon mentioned alternatives as a particular area of growth, especially given the lack of returns in equities.

Fearon mentioned private equity as well as art as possible sources of interest, though the portfolio construction could prove problematic, he added.

“[The hard bit] is how you put them into a portfolio, because the FCA wants clients to have liquidity.”

Equity markets are currently not providing much growth, he said, unless investors look at more high risk stocks like the tech sector.

“I think [alternatives] are going to become more interesting to investors over the next few years.”