ConsolidatorApr 23 2018

Fairstone makes third buy of 2018

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Fairstone makes third buy of 2018

Fairstone has made its third acquisition of 2018 with the purchase of Sims Financial Planning.

The deal brings total fee income of almost £500,000, three staff and funds under management of more than £90m to Fairstone.

Lee Hartley, chief executive of Fairstone Group, said: "It has been an excellent start to 2018 as we absorb further quality firms into the wider business. With our support in areas such as client activation, marketing, compliance and regulation we are able to help our partners achieve very significant levels of organic growth.

"We have enjoyed working closely with Neil Sims and his team over the past few years as they have become part of Fairstone. They are dedicated to providing quality independent advice and by relieving them of the regulatory and compliance burden, they can now spend more time working with their clients and expanding their business."

The deal took place through Fairstone's downstream buy-out model, where the company buys a stake in a firm and integrates it into the business before making the full purchase.

Mr Sims, the company principal at Sims Financial Planning, said: "We wanted to find a large, well established and professional firm which had the tools to support our advisory activities. Fairstone’s downstream buy out process has been a vital part of integrating successfully and it has ensured that there were no sudden shocks upon acquisition.

"We have enjoyed excellent support in all aspects of the business including investment management and compliance as well as specialist advice in areas such as mortgages and long-term care."

Fairstone has 410 advisers and staff in 38 branches and office locations, acting for more than 41,000 clients. It oversees £8.1bn of client assets with £5bn of funds under management.

Last week the company launched an individual buy-out programme to help advisers transition into retirement.

As part of the programme, advisers selling to Fairstone will receive an initial capital sum, as well as a proportion of ongoing fee revenue for an agreed period, typically 15 years.

damian.fantato@ft.com