London & Capital (L&C), the UK-based independent wealth management firm, is targeting a £3.5bn ($6bn) growth of its AuM in the next 3 years, a 40% increase from its current £2.5bn worth of assets.
The wealth manager is currently in a ‘high-growth’ mode, as it has already experienced a steady organic growth of the business with its AuM increasing by around 30% per annum for the past 2 years.
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L&C plans to push this growth from the firm’s core offering rather than through an acquisition or diversification strategy.
The global wealth manager relates the growth especially to the significant outflow of US orphaned clients from larger firms because of the ‘onerous’ nature of legislation in managing their wealth.
"Wealth management is about continuity and trust in your adviser and M&A makes the link between both parties more opaque. We’ve certainly been a recipient of the fall out with clients coming to us as they view us as a safe pair of hands," said Daniel Freedman, founder and managing director, L&C.
Benefitting from increasing mobile wealth, L&C has also witnessed an exponential growth in the inflows in its newly created London-based international wealth & immigration team and its satellite office in Hong Kong. The international wealth team is currently working on mandates that account for around 30% of the market share of investor visas in the UK.
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By GlobalData"Our model continues to be more popular with larger clients – as lots of wealth managers look to realise efficiencies by putting clients into models rather than bespoke portfolios. This has led to further inflow from £3m plus clients," L&C said.
L&C also expects growth to come from its US family office, private investment office, and the institutional team, which accounts for around a third of the firm’s overall AuM.
To meet the increasingly sophisticated demand, the group is highly focusing on its client experience proposition through investing in systems and client portals.
Freedman concluded: "Part of the benefit of being independently-owned and resolutely so, is that we can create investment solutions around the needs of a client rather than conforming to a specific model. We think we’ll continue to see more movement to those firms that have remained independent and have professionals that have been with the firm over the long term."
