Ashcourt Rowan is looking to grow its assets under management from £3.7bn to £10bn in the next three to five years following its deal to acquire adviser firm UK Wealth Management for up to £14.25m.
The company announced the UKWM deal last week. The integration of the two businesses is expected to complete within six to nine months, subject to regulatory approval.
Speaking to Money Marketing’s sister publication Fundweb after the announcement, Ashcourt Rowan chief executive Jonathan Polin said: “Unless you have very robust cash levels, you cannot operate. We want to build and expand aggressively; we want to be £10bn in AUM in three to five years.
“We are not going out tomorrow to look but there are a lot of opportunities out there. In the future, the type of businesses we would like to acquire are discretionary wealth managers, financial planning managers and corporate pension solutions.”
Evolve Financial Planning director Jason Witcombe says: “Most wealth management and financial planning firms find it difficult to find clients. Mergers and acquisitions are a quick fix to this problem so consolidation is inevitable.”
Ashcourt Rowan posted a pre-tax loss of £2.5m for the six months ending 30 September, compared with a £1.3m loss during the same period in 2012. Revenues fell from £10.9m to £10.4m over the same period.
Losses have been driven largely by an internal restructure. The restructuring costs include £890,000 on systems outsourcing, £550,000 on corporate restructure and redundancies, £225,000 on a review of systems and controls and £160,000 on infrastructure.