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Business & Economy

Fairstone partners with Mantle Financial Planning under its DBO programme

Fairstone, one of the UK’s largest Chartered financial planning firms, has announced it has gained almost £1.2 billion in funds under management through its Downstream Buy Out (DBO) model so far this year, following the agreement of a seventh deal with a South East firm. This brings total funds under management for Fairstone to close to £10 billion and funds under advice to almost £12 billion.

Mantle Financial Planning has joined Fairstone through its unique DBO programme, increasing the firm’s strategic footprint in the South East and marking another significant step forward in Fairstone’s growth plan for 2020.

The deal brings more than 1750 clients, 11 advisers and 13 support staff to the wider business as well as gross fee income of £3.3 million and funds under management of more than £480 million.

Fairstone’s DBO acquisition model is built on acquiring sustainable growth and operates by integrating an IFA firm, typically over a two-year period, before finally acquiring the business.

This latest deal with Mantle Financial Planning marks the start of this phased pre-acquisition process, enabling both firms to fully align in terms of culture and systems as well as empowering the business owners to optimise their capital realisation and control their sale valuation. Mantle will also be able to take advantage of the regulatory, technical and operational support that Fairstone provides.

Mantle Financial Planning has two offices, one in Epsom, Surrey and another in Twickenham, and the firm specialises in pension planning and investment management.

Fairstone CEO Lee Hartley (pictured) said: “We are delighted to welcome Mantle Financial Planning into our Downstream Buy Out programme. Their focus on quality advice and superior service is exactly what we are looking for in a business and their client-centric approach makes them an excellent fit for Fairstone.

“The structure of our unique DBO programme ensures we partner with quality firms with an appetite to grow and develop and Mantle Financial Planning share our values and aspirations for the future. We look forward to working with them and helping them to grow their business further.

“Our unique DBO model is continuing to yield exceptional results and bringing seven firms into the programme so far this year demonstrates that Fairstone has much to celebrate not only in terms of the excellent on-going service we are providing to our clients, but also the robust sustainable growth we are seeing throughout the business.”

Fairstone is a full-service wealth management house delivering integration-led growth and its unique DBO approach ensures that companies are fully-integrated with Fairstone prior to final acquisition, ensuring a seamless transition for clients and staff.

Significantly, many companies that have successfully reached full acquisition have enjoyed increased organic growth and a higher valuation than expected on purchase. Figures show that the firms Fairstone has acquired have received on average a further 12 per cent on top of their premium sale value with some achieving as much as 39 per cent more.

Mantle Financial Planning principal Colin Caulfield said: “We decided to join Fairstone to help us to deal with the increasing difficulties of being a medium-sized IFA directly regulated by the FCA. Joining Fairstone was the right decision as they are an independent, Chartered, national firm which is not just interested in the client bank, but the company as a whole.

“We look forward to integrating with Fairstone and we firmly believe this will be in the long-term best interests of both our clients and the company.”

Fairstone’s DBO programme continues to be a core driver of growth for the business, reversing the traditional buy and build approach, with integration playing the leading role in a firm joining the programme.

Lee added: “We are always looking for strong, high-quality businesses with ambitious growth plans to join Fairstone and whilst we recognise that we are all moving into a different climate with challenges ahead, we are in a strong position and we will continue to onboard new DBO firms at our forecasted volume.”