Succession has a further £25m in its back pocket after securing an investment package from HSBC and existing shareholders, including Inflexion Private Equity.
The money will be used, says Succession, to accelerate its growth strategy based on the acquisition of the best 50 firms from its affiliated membership by the end of 2017.
Over the last three years Succession has acquired 25 firms, creating a national advisory business. It currently has 50 affiliated member firms, each one of which is working towards being acquired. Overall, Succession has £11bn funds under management, both directly and via its affiliated membership.
Succession Group CEO Simon Chamberlain said: “We are at the half way point in our plan to create the UK’s largest independent wealth management business, with strong funds under management, and profitable advice and platform trading arms. Working with our shareholders, we have secured this institutional investment package from HSBC that demonstrates the strength of our business and confidence in the ability to execute our plan.
“Our proven integration and acquisition model continues to attract interest from ambitious wealth planning businesses, along with high quality individual RIs who are seeking security and recognition for their own life’s work within a supportive and rewarding framework.”
Lead investor Inflexion Private Equity Andrew Mainwaring said: “Securing additional investment from HSBC underlines the stability and success of Succession’s plan to create the UK’s largest independent wealth management business through a focused buy & build programme. Succession has an impressive track record, and we are delighted with the substantial growth its ambitious team has achieved in just two years.
Head of Middle Market Financial Sponsors Western and Wales at HSBC Rhys Jones said: “Succession is a strong business with an excellent reputation for delivery and a distinctive place in the UK financial services marketplace. Succession’s experienced and skilled management team place the company in an excellent position for its further expansion, and we have created a robust facility to support its growth plans.”