Fairstone Group  

Fairstone gains £104m assets in fifth deal of 2020

Fairstone gains £104m assets in fifth deal of 2020

Consolidator Fairstone has gained £104m funds under management and 5,000 clients in its fifth deal of the year. 

Carlisle-based IFA Financial Concepts has joined Fairstone via its downstream buy-out model, which sees it take a stake in an advice firm before integrating and then purchasing it.

The deal marks the fifth advice firm to have joined the consolidator via its buy-out model in 2020, with a total of £519m of funds gained since the beginning of the year. 

Financial Concepts specialises in pensions and investment advice and will join Fairstone with six advisers across two offices and a gross fee income of £1m. 

Lee Hartley, chief executive at Fairstone, said the consolidator's portfolio of acquisitions has so far outperformed targets by 15 per cent. 

Mr Hartley added: "We are always looking for strong, high quality businesses with ambitious growth plans to join Fairstone and whilst we recognise that we are all moving into a different climate with challenges ahead, we are in a strong position and we will continue to onboard new DBO firms at our forecasted volume."

Earlier this month Fairstone gained £200m funds under management when it added Yorkshire-based Brantwood Financial Planning and Durham-based Advanced Financial Services to its buy-out model, as it pushed ahead with its pipeline despite the coronavirus lockdown

Fairstone recently confirmed it was honouring all bonuses and pay rises amid the coronavirus lockdown after cutting £1.4m in costs from the business. 

The company also said it was not considering any redundancies as a result of the savings it had made through reducing non-essential spending across marketing, external consultancy and travel. 

rachel.mortimer@ft.com

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