Bowmore Wealth Group looking to grow through acquisitions as it targets £1bn in AUM by 2025

by | May 10, 2022

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  • Bowmore restarts acquisitions after putting due diligence on hold during the pandemic
  • Bowmore’s investment management arm, Bowmore Asset Management, rated the fastest growing DFM in the UK

Bowmore Wealth Group is looking to get back on the acquisition trail as it targets £1bn in assets under management (AUM) by 2025. Bowmore had to put its acquisition plans on hold during the pandemic as the deal flow dried up as the uncertainty of Covid put may business owners plans on hold.

However, Bowmore is nearing completion of its first post-Covid deal with the acquisition of a small financial planning practice that specialises in dealing with the medical profession. This is the first of a few in Bowmore’s deal flow which represents the start of the Group’s plans to accelerate growth.

Bowmore Wealth Group is set to have around £400m in assets under administration by July this year.

Bowmore plans to accelerate both its organic and external growth, seeking to add another £300m in assets through acquisitions and an additional £300m organically.

Bowmore is very selective in the companies it acquires, targeting only financial planning or investment management firms which share Bowmore’s ethos of bespoke, high quality, personal service.

The business plans to make one or two acquisitions a year of IFAs or DFMs which have around £100m in AUM and are looking for the right opportunity to grow further.

Bowmore strengthened its investment capability recently with the hire of chief investment officer, Jonathan Webster-Smith, from Brooks Macdonald in May 2021. Jonathan oversaw the rapid growth of Brooks Macdonald’s multi-asset team since its inception in 2003, where he was responsible for managing assets of around £2.5bn.

Bowmore has invested significantly in its back-office operations and importantly they now have the right structures and foundations in place for their next stage of growth.

Bowmore Wealth Group offers both financial planning and investment management. Its investment arm, Bowmore Asset Management, is the fastest growing discretionary fund manager (DFM) in the UK.

Mark Incledon, Chief Executive of Bowmore Wealth Group, says: “Covid slowed down our plans for acquisitions. However, we’re committed to only merging with, or acquiring businesses that have the right cultural fit. We find that we best assess cultural fit through face-to-face meetings – something Covid didn’t allow much of.”

“Saying that, our desire to only pursue high quality with the right cultural fit means we might lose out on some deals to the big consolidators, but we are very comfortable with that.”

“We know there are lots of IFAs and DFMs out there struggling to get to the next level. Many of these are high quality businesses which have grown to around £100m in AUM, but then find they are being held back by ever rising compliance and other back-office costs. However, they don’t want to become part of the factory style of financial advice that some consolidators offer. Ultimately, this means they will lose their identity as a business and end up offering a lesser service to their clients”

“We provide a fantastic opportunity for these businesses to realise their growth potential and have the evidence to support these claims. Our most recent acquisition saw their assets grow by 40% from £50m to £70m within 24 months, simply by maximising the potential out of the existing client bank.”

“We have a clean, efficient structure built to reflect the investment industry today, with all the infrastructure already in place. By joining us, businesses can get on with financial planning or investment management (or both) – we’ll take care of the rest.”

Bowmore Asset Management has recently been awarded the ARC’s 3D Award. This award is an independent endorsement of an investment manager’s commitment to the principles of transparency, engagement and integrity.

Mark Incledon commented to say this is a reflection of the way we run our entire business. We are 100% transparent with our clients, third parties and other associated businesses that we deal with. We can easily and clearly demonstrate the attractiveness of our business and why it will be a perfect fit for others to come and join us.

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