Consolidator Fairstone has purchased south west-based financial planning firm Sovereign Wealth Management through its downstream buy-out model.
Financial terms of the deal are unknown.
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By GlobalDataWith offices in Bath and Bristol, the acquired company is a whole-of-market advice firm specialising in investment and retirement portfolios.
Fairstone CEO Lee Hartley said: “We are delighted to complete the final acquisition of Sovereign Wealth Management, having worked hand-in-hand with them throughout the integration phase.
“The team are a strong cultural fit for Fairstone, with high-quality individuals who really care and put clients at the heart of what they do.”
The deal brings 1,500 clients and £1.25m gross fee income to Fairstone.
Fuelling growth through downstream buy-out model
Fairstone has carried out several acquisitions through its downstream buy-out model.
Under this model, the company typically purchases a stake in the to-be acquired firm, in order to integrate it over a two-year period, before the final takeover.
Fairstone’s ongoing buying spree
Last week, Fairstone acquired South Wales-based UskVale Financial Planning, which specialises in the management of investment and retirement portfolios.
It also snapped up Berkshire-based advice firm Chiltern House, and Lincolnshire-based MT Financial Management recently.
It followed the company’s previous acquisition of two advice firms in the UK that added £215m in FUM to its books.
In January this year, Fairstone bought Hamlyn Financial Services and Wagstaffs Wealth Management.