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Tenet buys Preston-based advice firm

Tenet buys Preston-based advice firm

Tenet has bought one of its member firms in a buy-out scheme which was launched earlier this year.

The deal to buy Preston-based Elementum Ltd will add £80m of funds under management to Tenet's wholly-owned appointed representative Aspire Financial Management.

It followed the purchase of the 200-strong client bank of Dorset-based Blackmore Vale in May this year.

Tenet launched its practice buy-out scheme in January after a pilot stage to offer its network member firms an exit strategy for retirement.

Martin Greenwood, chief executive of Tenet, said: "Succession planning is traditionally a tricky issue for advisers, who want to realise the value they have built up within their firm at the same time as retaining a safe home for their client bank.

"Since the launch of our practice buyout scheme, we have had a lot of interest from our network firms and are in advanced discussions on a range of deals, from smaller client bank acquisitions to larger company buyouts."

Elementum had been Tenet members since 2006 and both directors, Peter Pearson and Martyn Slater, will be staying with the company to help with the transition and further develop the business as a regional hub.

Mr Pearson said: "Selling to Tenet gives us peace of mind and we are looking forward to continuing to grow the business and developing our successful long term relationship with the group."

The practice buy-out scheme was first started in 2016 because there had been demand among the networks's membership for a way to exit the market with ease.

It came after Tenet bought the client bank of Furness Building Society's financial advice arm.