Consolidator Fairstone has reportedly agreed to acquire Glasgow-based financial advisory firm Chartermarque for an undisclosed sum.
The deal, which follows a major funding from private equity firm TA Associates, marks Fairstone’s second acquisition this year after the buyout of Berkshire-based Hammett and Petch Financial Planning.
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With the latest deal, Fairstone is set to bring in 200 clients as well as four financial advisers and four support staff to its business.
It will add gross fee income of $276m (£1m) and an FuM of £200m to the company’s book.
Fairstone chief executive Lee Hartley said: “We are delighted to complete the final acquisition of Chartermarque which is a genuinely high-quality business with a proven leader in Scott Morton.
“We have worked closely with the team at Chartermarque throughout the integration phase and they share our core values of putting clients at the heart of everything we do, making them an excellent fit for Fairstone.”
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By GlobalDataFairstone agreed to buy Chartermarque under its downstream buyout (DBO) model.
Under this model, the company first purchases a stake in the to-be acquired firm and integrate it over a two-year period, before the final purchase.
Chartermarque principal Scott Morton said: “Continuing to meet our clients’ needs in a rapidly changing environment has been at the forefront of our decision to become part of Fairstone.
“The desire to continue to provide independent advice was particularly important and Fairstone’s financial strength allows further investment in people and infrastructure – all for the ultimate benefit of our valued clients.
“Fairstone provide the financial strength and stability that a smaller firm like ours will benefit from together with providing the technology that is vital in today’s marketplace.”
Newcastle- headquartered Fairstone has 42 locations across the UK. It is said to manage £10.6bn in funds on behalf of over 34,000 clients.
The company made a number of purchases last year, including that of south west-based financial planning firm Sovereign Wealth Management, South Wales-based UskVale Financial Planning, Berkshire-based advice firm Chiltern House, and Lincolnshire-based MT Financial Management among others.
