Advice firm Ascot Lloyd is set to boost its acquisition plans after securing financing from investment manager Ares Management.
According to Ascot Lloyd, the financing will be used to support its “ambitious growth strategy” and will increase the capital available for acquisitions to more than £100m.
The exact level of financing has not been revealed.
Ascot Lloyd completed 12 acquisitions during 2020, which added more than £6.5m of earnings before interest, taxes, depreciation and amortisation to the firm with group revenues now over £60m.
Ascot Lloyd is now approaching £10bn funds under influence, serving more than 21,000 clients through 132 advisers.
Nigel Stockton, chief executive of Ascot Lloyd, said the additional funds would help the firm search out more “meaningful acquisitions”.
Stockton said: “Recent investments into the sector have highlighted the scale of consolidation set to take place, and Ascot Lloyd is well placed within this.
“The additional funds we now have available will allow us to focus on more meaningful acquisitions while our proven ability to integrate businesses alongside offering a compelling platform for advisers will continue to make us an attractive home for IFAs looking to sell.
He added: “We are also investing in infrastructure and technology across both our back-office and front-office, becoming more efficient as a business while enhancing how we engage with clients.
“Our resilience during Covid-19 is testament to our financial performance, capital strength and ability to service and advise clients during unprecedented times and volatile markets.”
Daniel Sinclair, a partner at Ares Management, said: “We believe Ascot Lloyd is a very well-positioned business operating in a market with positive long-term structural drivers.
"Ascot Lloyd is now one of the UK’s largest and fastest growing independently owned IFA firms and we look forward to working with Nigel, his team and Oaktree Capital as it continues this success.”
Oaktree Capital is the private equity firm which owns Ascot Lloyd.
Yesterday Fairstone Group announced it would also boost its growth and acquisition plans after it secured investment from global private equity firm TA Associates.
amy.austin@ft.com
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