Fairstone Group  

Fairstone acquires Surrey-based adviser

Fairstone acquires Surrey-based adviser

Fairstone has gained almost £1.2bn in funds under management through its acquisition model so far this year as the consolidator sealed its seventh deal. 

In an update today (July 7) Fairstone announced Surrey-based Mantle Financial Planning had joined the business via its downstream buy-out model, which sees the consolidator take a stake in an advice firm before integrating and then purchasing it.

Mantle Financial Planning, with two offices in Epsom and Twickenham, adds almost 2,000 clients and 11 advisers to Fairstone.

The deal will also bring with it gross fee income of £3.3m and funds under management of more than £480m.

It follows a string of deals completed by Fairstone in recent months, with the advice company most recently gaining almost £180m in funds under management when it welcomed Lincolnshire-based MT Financial Management last month.

Lee Hartley, chief executive at Fairstone, said the buy-out model was yielding "exceptional results" for the company.

He added: "Bringing seven firms into the programme so far this year demonstrates that Fairstone has much to celebrate not only in terms of the excellent on-going service we are providing to our clients, but also the robust sustainable growth we are seeing throughout the business.

"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."

According to today's update, firms acquired by Fairstone had received on average a further 12 per cent on top of their agreed sale price after they met performance targets - with some achieving up to 39 per cent more.

Colin Caulfield, principal at Mantle Financial Planning, said: "We decided to join Fairstone to help us to deal with the increasing difficulties of being a medium-sized IFA directly regulated by the FCA.

"Joining Fairstone was the right decision as they are an independent, chartered, national firm which is not just interested in the client bank, but the company as a whole."

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

rachel.mortimer@ft.com

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