With rising interest rates making bonds look attractive and equity markets no longer a sure-fire source of returns, many individuals are turning to wealth managers for financial advice. An ageing European population with large savings pools is only likely to push that trend forward.
Since PE Hub Europe launched a few months ago, we’ve seen a steady stream of private equity firms striking deals in the wealth management sector. Here are five that caught our attention (in reverse chronological order):
1. CBPE’s Perspective Financial adds Goldwyns Wealth
In November, CBPE-backed Perspective Financial Group announced that it had completed its 10th acquisition of 2022 with the purchase of Goldwyns Wealth Management.
Goldwyns, based in Southend-on-Sea, England, is a firm of financial planners and wealth managers with a network of offices throughout the UK. The deal added £70 million ($79 million; €80 million) in assets under management to Perspective and raised its number of local offices in the UK to 23.
“We have our biggest ever pipeline of acquisitions, both large and small, over the next 18 months and relish the opportunity to grow Perspective at scale and pace,” said Ian Wilkinson, CEO of Perspective. “This latest acquisition is further evidence of our ability to implement our vision.”
2. Cinven takes Säkra from Adelis
In September, Cinven agreed to acquire Säkra from Adelis Equity Partners. The acquisition was made via Cinven’s inaugural Strategic Financials Fund (SFF), which held its final close in July with total capital committed of €1.5 billion.
Säkra is a Stockholm-based insurance broker, providing life and non-life insurance products, as well as pension and wealth management services.
“The investment is supported by a resilient underlying market in Sweden and is well positioned to grow organically, with further upside through its demonstrated M&A trajectory,” said Luigi Sbrozzi, partner and co-head of the SFF. “Säkra offers a high-quality scalable platform, with associated benefits for clients as the business develops and expands over the long term.”
3. Cairngorm-backed Verso buys Campbell Thomson
In August, Cairngorm Capital Partners announced that its portfolio company Verso Wealth Management had acquired Campbell Thomson. The acquisition took Verso’s assets under management to more than £1 billion.
Based in Glasgow, Campbell Thomson is a second-generation firm that provides financial advice and planning for businesses and individuals across the UK. As of Q2 2022, Campbell Thomson provided advice on assets exceeding £315 million.
London-based Cairngorm Capital Partners is a private equity firm that invests in mid-market growth companies, operating in manufacturing, distribution and services industries.
“Campbell Thomson is an excellent company with a well-deserved reputation for outstanding service,” said Neil McGill, managing director at Cairngorm Capital. “It demonstrates all that we like in a partner firm – strong performance, differentiated service and an excellent management team. We are delighted to be able to support Verso’s continued growth and are excited about further expansion opportunities in the pipeline.”
4. PCP brings in Saltus Group
Also in August, Preservation Capital Partners (PCP) announced that it had bought wealth management firm Saltus Group. Saltus manages £2.3 billion in assets. It expects to reach £4 billion in assets under management by the end of the year.
“The central principle of our investment approach is to back outstanding management teams that have demonstrated an ability to outperform the market,” said Andrea Secci, managing director at PCP. “Saltus has industry leading double-digit organic growth rates, incredibly high retention and a unique vertically integrated business model. We are delighted to be supporting the firm to supercharge growth.”
PCP is a private equity firm that specialises in investing in the high-growth financial technology and services sector. PCP manages approximately £830 million and, like Saltus, is based in London.
5. LMP buys London & Capital
In June, Lovell Minnick Partners, a Philadelphia-headquartered private equity firm investing in financial services, fintech and business services, agreed to buy a majority stake in wealth and asset manager London & Capital. The transaction is expected to close in the fourth quarter.
PE Hub Europe spoke with Spencer Hoffman, partner at LMP, and Guy McGlashan, CEO of London & Capital, to get both firms’ perspectives on the deal.
“We think it’s always a good time to invest in financial services, since it drives the global economy,” Hoffman said. “It has long-term, secular tailwinds that we think are a great investment opportunity for firms like us.” The investment in London & Capital, based in London, “comes at a very, very good time, because arguably, it’s been a decade since clients have needed significant support and help in their wealth planning and their financial planning”.
With the outlook for rates and markets ever more uncertain, wealth management is only likely to become more important for those looking to find the best place for their money.