Maven Capital Partners has sold its stake in Titan Wealth Holdings to US private equity house Parthenon Capital.
The deal, subject to regulatory approval, will see Parthenon Capital invest in Titan’s technology, as well as providing additional capital for future mergers and acquisitions.
On completion, Parthenon will be Titan’s major shareholder, with existing investors Ares and Hambleden Capital remaining invested in the business.
The Maven UK Regional Buyout Fund originally backed Titan in July 2021, when it launched, and this deal represents the second successful exit for the fund, with an internal rate of return of more than 100 per cent for investors.
Andrew Fearon, joint CEO and head of M&A at Titan Wealth said: “[The deal] is fantastic news for Titan Wealth and our future growth plans.
“It is a validation of our differentiated client to custody strategy and the partnership positions us well for continued strong organic and inorganic growth.”
Andrew Dodson, managing partner at Parthenon Capital, said: “Titan Wealth is an outstanding business to partner with for our first platform investment in the UK.
“The management team has demonstrated a strong track record of growth and their vertically integrated, client to custody strategy is differentiated from other players in the wealth management sector.”
Tom Purkis, partner at Maven, said the transformation of the initial group since Maven first invested in June 2021 is testament to the hard work and ambitions of the management team.
“The investment and partnership with Parthenon will help to support the impressive growth that Titan has delivered to date and we are delighted to continue our support for the business as it scales further.”
Titan Wealth’s first acquisition was of GPP and Tavistock Wealth in 2021, and since then it has acquired a number of companies, 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.
Late last year, 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 company has said it 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.
Fearon told FTAdviser 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.
sally.hickey@ft.com
