Consolidator Fairstone has completed its first acquisition of the year for an undisclosed sum, adding £200m funds under management to the financial advice company.
The purchase of Pensions and Wealth Management Services was carried out through Fairstone's downstream buy-out model, which sees the company take a stake in an advice firm before integrating it and then purchasing it.
The acquisition will bring a further 400 clients into the Fairstone group and a gross fee income of £1m.
Pensions and Wealth Management Services specialises in investment management and retirement portfolios, with four advisers and four support staff based in offices in Hertfordshire and West Lancashire.
Lee Hartley, chief executive of Fairstone, said: "Our DBO proposition continues to gain in popularity, particularly among more sophisticated wealth management firms who place significant importance on ensuring that positive customer outcomes are realised as a result of the transaction.
"PWMS has a reputation for excellent client service which makes the firm a strong cultural fit with Fairstone."
He added: "This marks a great start to the year and reinforces our intent to partner with the highest-quality firms who share our culture as well as our commitment to ensuring client interests are never compromised as a result of a sale."
Earlier this month Fairstone announced it had secured another £30m from financial backers to continue buying advice businesses, with private equity firm Synova Capital as its lead investor.
David Halsall, company principal at Pensions and Wealth Management Services, said joining Fairstone has given his company the opportunity to concentrate on working with its long-standing clients.
Mr Halsall said: "After considerable due diligence, it was clear that Fairstone was the standout offering.
"We wanted to work with a chartered business that believes in independence and whole-of-market choice.
"We felt that the Fairstone proposition was quite unique in its construct and provides an outstanding support framework which takes care of all the business quality and regulatory requirements."