Stephen Kavanagh is a man with a plan. A four-point strategic growth plan to be precise, which he aims to exert to help Chase de Vere flourish and grow.
The chief executive, who took up his role seven years ago, revealed his strategy for expansion, which includes a mix of acquisitions, recruitment, affinity partnerships and organic growth.
Mr Kavanagh said acquisitions are a key area for growth and that Chase de Vere has been approached by a number of IFA firms and is actively speaking with up to three. However, it is currently performing the relevant due diligence to gauge the risks and rewards, which means it is a lengthy process.
However, he added that advanced talks are already underway and an announcement may be made soon.
He said “We have been in advanced talks and although I don’t yet have timescales for when any possible deals may be completed, we are making good progress. Our focus will be on quality rather than quantity, so that takes time, but an announcement should be expected soon.
“I think part of our appeal and why so many IFA firms have expressed an interest to join us is because we are staunchly independent. We allow advisers to keep their independent tag and do not push them down a restricted advice route, which I know many do not want to go down.
“Our focus is on providing personalised face-to-face independent financial advice and we look to acquire IFA firms that fit into our ethos of putting the clients at the heart of everything.”
He added that parent company Swiss Life has been supportive in allowing Chase de Vere to grow its business through acquisitions and indicated it would provide financing for any purchases when necessary.
In fact, Swiss Life considers Chase de Vere to be a trailblazer compared to its European adviser firms and often sends advisers from Austria and Czech Republic to the UK office so they can learn their operational tips and share ideas for best practice.
Recruitment is another ongoing area for expansion and Chase de Vere is always on the hunt for good quality advisers and support staff throughout the UK.
Chase de Vere also has plans to grow its market through its affinity partnerships. The most prominent of its current affinity partnerships is with the British Medical Association. In the past 18 months Chase de Vere has increased the number of advisers it has dedicated to working with the BMA from 37 to 63. All of these advisers have specialist knowledge and qualifications including expert knowledge of the NHS Pension Scheme.
Mr Kavanagh said: “We are proud of our work with BMA and we are aiming to add to the number of our affinity partnerships. We are actively looking for more affinity partnerships as this is an important part of our growth strategy.
“We find that potential partners value that we give independent financial advice – as opposed to restricted.”
Last, but by no means least, organic growth is a key area of expansion for Chase de Vere. The firm has clearly made some great progress here in recent years. In fact, the average adviser at Chase de Vere produces a fee income of £245,000 a year. This is substantially above the industry average and Mr Kavanagh believes this is testament to the quality of advisers it employs.
Mr Kavanagh began his career in financial services in 1985 with Bank of Scotland as a private client portfolio manager. In 1992 he became an independent financial adviser with Allied Irish Bank and in 1997 joined Thomson’s Financial Planning, now Chase de Vere, progressing to become regional sales director and then national sales director. In 2010, Mr Kavanagh was appointed as chief executive of Chase de Vere and in 2013, Swiss Life promoted him to sit on the executive committee of Swiss Life International.
Earlier this year, Chase de Vere announced increased profitability, revenue and adviser productivity in its annual report and accounts for the calendar year ending December 31, 2016.
The company reported a profit of £5.8m before tax in 2016, which is an increase of 6.9 per cent on the previous year when it stood at £5.4m. Its fee income revenue increased from £50.1m to £51.8m.
At the time, Mr Kavanagh said: “I am incredibly optimistic about the future prospects for Chase de Vere, which can prosper in an environment where independent financial advice is becoming scarcer. We’ve already started 2017 in good style, with fee income revenue in the first quarter up by 6 per cent compared with last year.”
Aamina Zafar is a freelance journalist
Stephen Kavanagh career highlights
2010 – present
Chief executive at Chase de Vere
2006 – 2010
National sales director at Chase de Vere
2004 – 2006
Regional sales director at Chase de Vere
1997 – 2004
Independent financial adviser at Chase de Vere (Thomson’s Financial Planning)
1992 – 1997
Independent financial adviser at Allied Irish Bank
1985 – 1992
Private client portfolio manager at Bank of Scotland