Swedish wealth manager Söderberg & Partners has made investments in four more IFA firms as it expands its presence in the UK financial advice space.
The firms are George Square, based in Nottingham, Cheltenham IFA Ltd, an advice firm based in the heart of Cheltenham Spa, Bluezone Capital Ltd, a London-based IFA boutique and Alexander Bates Campbell (ABC), based in the south-east of England.
Söderberg & Partners said in the statement today (21 October) that it has itself received significant investment from its minority owners KKR and TA Associates this year. In July it was announced that they would invest an extra 3 billion SEK (£220m) in the business through a new share issue, with the additional funding supporting Söderberg & Partners’ continued expansion, particularly in the UK and Spain
Gustaf Rentzhog, chief executive officer at Söderberg & Partners, said: “The UK advice market is a top strategic priority for us and we have identified numerous attractive businesses here in our search for new investment opportunities. Our minority stakes in George Square, Cheltenham IFA, Bluezone Capital and ABC will support the development of these businesses which have a strong track record in positive client outcomes and customer service. We look forward to partnering with them to help take these firms into their next phase of growth.”
George Square has an adviser covering London from Worthing, as well as two appointed representatives in Sheffield and Newark. It manages £400m of client assets with a team of 10 advisers and 10 support staff.
Cheltenham IFA Ltd, was formed in 2008, the businesses advises on £290m of client funds and employs 13 local staff. It has a wealth management proposition at its core and builds long-lasting relationships with its clients that regularly progress to the next generation.
Bluezone Capital Ltd, a London-based IFA boutique with more than £90m in AUM, helping around 500 family units with wealth management and another 300 with mortgages and protection.
Although ABC is based in the south-east of England its serves clients throughout the UK, Europe and further afield. ABC has a directly authorised business with private client assets under management of £140M focusing on maintaining strong client relationships over the longer term and intergenerational financial planning. ABC has a European subsidiary providing a full range of services to private clients, with a cross border passport for all EU countries. ABC also looks after corporates with international operations with solutions including employee benefits, payroll and HR services.
George Goward, managing director of George Square, said: “With the UK market facing increasing challenges, the partnership is designed to strengthen George Square’s capabilities. Söderberg & Partners will support us in streamlining operations, enhancing efficiencies, and through providing back-office support, enabling the firm to continue its upward growth trajectory at an accelerated pace. We are thrilled to welcome Söderberg & Partners as our strategic partner.
“Its investment in George Square underscores the firm’s belief in our future and confidence in our vision, and its support will be invaluable as we build on our recent acquisition of Taylor McGill Financial Management. We look forward to a prosperous partnership that brings added security and reinforces our commitment to growth.”
Mark Stanley, director and independent financial adviser at Cheltenham IFA Ltd said: “It became apparent quite early in our discussions that our ideas and ethos were perfectly aligned with Söderberg & Partners. The partnership will allow us to accelerate growth through further business acquisitions whilst using enhanced technology to improve both our efficiency and our client proposition.”
Jason Hitchen, director of Bluezone Capital, added: “As a generalist firm, Bluezone Capital leverages cutting-edge technology to deliver top-tier financial planning solutions. This collaboration will allow us to harness Söderberg & Partners’ expertise, ensuring the best outcomes for our clients.”
Richard Alexander at ABC said: “For some years, we have been receiving regular approaches from consolidators within the industry, wanting to purchase our business, but in the majority of cases, they are more interested in the revenues from assets under management than providing the dedicated client relationship services that we have built our business on and which our clients have come to expect and enjoy. The initiative from Soderberg and Partners, which enables us to keep our own identity and style of business we believe, will enable us to satisfy our concerns over continuity for clients and staff in a financial environment, where the winds of change are blowing like a hurricane.
“With the additional support and resources available through S&P, we believe that this will not only enable us to maintain our style of business, from which, our clients will continue to benefit, but we will also be able to invest in developments in technology, which will strengthen our offer and maximise the time we are able to spend with clients and we will take our business to the next level.”
