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Fairstone Group secures Chadney Bulgin deal as funds under management rise to £10.7 billion

A wealth management firm says it has made “excellent progress against its core strategy and growth plan” after revealing a rise in funds and income.

Newcastle-headquartered Fairstone Group saw funds under management increase 32 per cent to £10.7 billion in the year to December 2020, with recurring income lifting more than 18 per cent to £49.3 million.

And bosses at the business, which operates from more than 40 locations across the UK, says it is primed to growth further, revealing today (Thursday, October 7) a deal to buy Hampshire and West Sussex-based operator Chadney Bulgin.

Officials say the agreement for the Chartered firm, which specialises in advice and management of investment and retirement portfolios, brings more than 11,000 wealth and mortgage clients into the Fairstone business and secures funds under management of more than £850 million, as well as 27 advisory and 38 support staff roles.

According to its annual financial results, Fairstone Group saw total revenue grow eight per cent to £69.7 million, with adjusted EBITDA showing a profit of £5.4 million.

Its number of clients during the period increased 18 per cent to more than 40,200.

Lee Hartley, chief executive of Fairstone Group, which has made a number of acquisitions over the last 12 months, said: “In 2020, against the backdrop of the global pandemic, we again delivered strong progress across all areas of the business and the group continues to make excellent progress against its core strategy and growth plan.

“From an acquisition perspective, the year was very heavily back-end loaded as the effect of a national lockdown delayed a large amount of our due diligence programme.

“I’m delighted to say that every single deal we aimed to complete in 2020 was concluded, although naturally these were later than planned.

“Ultimately, this means our profits for the full-year are quite heavily understated when compared to the steady-state performance.

“A combination of organic growth and the success of our proprietary downstream buy out acquisition model is continuing to deliver exceptional results and to drive growth, with a series of deals with partner firms being completed at various stages within the financial year.”

Referring to its Chadney Bulgin deal, Lee [pictured above, left, with Chadney Bulgin principal David Thomas], said it represents an “excellent fit” for Fairstone Group.

He added: “The client-focused team has almost three decades of experience in providing quality advice and exceptional service to clients.

“Welcoming Chadney Bulgin marks a valued addition to the group and continues our commitment to invest in quality, forward-thinking firms that are on a clear upward trajectory.

“We are looking forward to working with the team to support them to significantly grow the business, without compromising on client service or independence.”