Fairstone has added DHD Wealth Management to its team.
This is the latest downstream buyout deal to be announced by Fairstone since it received £25m of private equity backing from Synova Capital earlier this year.
The downstream buyout model is based on Fairstone taking an initial minority stake in an IFA business and then, over a number of years, integrating the firm into its systems and structure.
Based in Wales with offices in Aberystwyth and Cardigan, DHD is led by Aled Davies, Clive Davies and Denise Jacob. The firm specialises in investment planning, pensions and IHT planning. It represents around 1450 clients.
Following the deal, Fairstone’s total revenue will be boosted by some £1.5m. And funds under management will rise by around £207million. DHD’s four advisers and five support staff will join Fairstone, increasing its adviser base to over 265.
CEO of Fairstone Group Lee Hartley (above) said: “With such a strong focus on providing their clients with first-class service, we knew that DHD Wealth Management would be an excellent fit with Fairstone, both commercially and culturally. We look forward to working with the well-established team there to support their marketing, front and back office and client acquisition strategies in order to help them grow the business further. We are always looking for strong, high quality businesses with ambitious growth plans to join the Fairstone Group.”
Principal at DHD Wealth Management Aled Davies said: “We joined Fairstone because they are an IFA which has a DFM arm, but does not expect firms such as ourselves to ‘shoe horn’ clients into their proposition. Having looked at many proposals, the Fairstone package appealed because we can ultimately complete this transaction yet continue to service our valued clients with whom we have a long term relationship. The fact that Fairstone will also help us recruit new entrants into the business to expand also appealed.”