Chartered financial planning firm Fairstone has completed another acquisition, bringing the total number of acquired advice firms this year to eight and adding more than £80m funds under management to the company.
The purchase of Stockton-based Chilli Financial was carried out through Fairstone’s so-called downstream buy-out model, which reverses the traditional buy-and-build approach.
Fairstone takes a stake in an advice firm before integrating it and then purchasing it.
The acquisition will bring an additional 400 clients to the Fairstone group and a gross fee income of £600,000.
Chilli — which specialises in wealth management — will also bring across two advisers and three support staff.
Lee Hartley, chief executive of Fairstone, said: "We have worked closely with Chilli over the past two years...and we are delighted to now complete their final acquisition.
"Finalising this deal brings another valued business into Fairstone and continues our growth plans for 2019."
Company principal at Chilli Financial, Ian Robinson, said Fairstone's client-centric focus, chartered status and size were the main factors in their decision to join the firm.
He added: "[The acquisition] allows us to address the challenges of dealing with increasing regulatory change while at the same time continuing to deliver first class service to our clients.
“This is a very positive step forward for our business, providing us with long-term stability in a rapidly changing market along with the strategic and financial support needed to develop our capabilities moving forward.”
Fairstone now operates across 48 locations and is made up of financial management, private wealth, corporate solutions, mortgage solutions and estate planning channels.
The firm has 560 advisers and staff acting for more than 59,000 clients and overseeing £10.8bn in client investment assets.
What do you think about the issues raised by this story? Email us on email@example.com to let us know.