The company has undergone a period of significant transition since the sale of its fund management division in April 2012, with a singular focus on expanding its core offering of investment management and wealth management services.
It has been the company’s strategy to expand by organic growth as well as selected additional additional hires and acquisitions, provided the culture and values of any such additions are aligned with those of the company.
Combined strength
Barker Poland fits well with WCG’s strategy because it is a manageable bolt-on acquisition of a predominantly discretionary investment management business with an established client base producing annual revenues that are recurring and fee-based, with no commission and no trail revenues.
There are substantial opportunities for cost synergies, particularly those arising from the use of WCG’s in-house platform and systems, which can be achieved largely in the short term from reduced platform and custody costs and reduced premises costs.
Barker Poland’s discretionary-managed AUM will add to the existing mix of WCG’s aggregate funds under management and administration as it reaches £2bn in discretionary and advisory AUM.
Barker Poland is a good-quality business with £1.5m in recurring income. The AUM of Barker Poland has since increased and the expectation is that revenues will increase proportionally.
WCG believes it will also benefit significantly from the addition of capable, specialist and experienced staff from Barker Poland, which includes five qualified financial advisers.
CEO Geoff Wright will become a key member of the combined management team, while the chairman, Pat Barker, will continue in an executive capacity following the acquisition.
