Chartered financial planning firm Fairstone has completed another acquisition, bringing the total number of acquired advice firms this year to seven and adding more than £150m funds under management to the company.
The purchase of north west-based Octagon Wealth Management was carried out through Fairstone’s so-called downstream buy-out model, which reverses the traditional buy-and-build approach.
Instead, Fairstone takes a stake in an advice firm before integrating it and then purchasing it.
The acquisition will bring an additional 800 clients into the Fairstone group and a gross fee income of £1.1m.
Octagon, based in Burscough near Ormskirk, specialises in managing investment and retirement portfolios.
Lee Hartley, chief executive of Fairstone, said: “We are delighted to complete the final acquisition of Octagon, having worked closely with them through our proprietary downstream buy-out programme.
“We work hard to ensure our proposition gives firms the framework they need to significantly grow their businesses, without compromising on client service or independence.”
Company principals at Octagon Wealth Management, Richard Hollington and Jon Routledge, said Fairstone’s “strength in size”, “customer-focused acquisition model” and “technology” were the main factors in their decision to join Fairstone.
Mr Hollington added: “While we have been integrated into the Fairstone family for over two years now, by being fully absorbed into one of the largest chartered financial planning firms in the UK our clients can be even more confident that we will be there for them for the long term.
“We are faced with the challenges of ever-changing and increasing regulation and the need to continually adapt to new processes and systems.
“Deepening our existing relationship with Fairstone means we can take full advantage of the support offered, leaving us with more time to spend with our clients, who are the ultimate focus of our business.”
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