View more on these topics

Barnes expected buyout exodus

Bestinvest chief executive Andrew Barnes says he expected outflows of staff after the private equity takeover and believes the firm is now moving in the right direction.

In his first interview since the takeover at Bestinvest, Barnes attributes most of the departures to lifestyle decisions after individuals were given significant sums as part of the deal last July.

The firm lost 10 per cent of its staff, including investment director Mike Neu-mann, strategy and acquisitions director Dominic Cummings and head of communications Justin Modray.

Barnes says he expected the turnover, having been through four or five similar buyouts.

He says: “We think we made seven millionaires following the buyout, so once employees had crystallised their earnings, we expected to see changes and we lost people who wanted to follow their own different career path. We predicted that we would lose 15 staff and that is what we did and we have restructured to accommodate for it.”

Barnes says he remains comfortable on business prospects despite the market downturn. He says: “The business is going along nicely and although growth will not be as high due to falls in the FTSE, we modelled for scenarios like that and the business model has been extremely robust. If one were to do a straw poll in the market, that would not be the case as most IFAs are marginally profitable at best.”

See full interview in Money Marketing next week

Recommended

Hometrack calls for arrears data to be published by lender type

Hometrack has called for more data to be published on arrears and possessions by lender type and by broad mortgage sector.Risk and economics director Gary Styles says that rising arrears in higher risk sectors could distort the perceived overall picture for mortgage lending and the housing market in the UK.“Lenders who concentrate on the prime […]

Black and White pulls out of regulated sector

Mortgage firm Black and White Group has withdrawn from the regulated mortgage market and put this part of the business into administration.Chief executive Thomas Reeh resigned on Monday after the group announced it had voluntarily rescinded its Part IV permissions and will no longer be regulated by the FSA.Reeh told Money Marketing: “The company is […]

Indian summer

China seems to hog all the headlines, no doubt helped by hosting of the Olympic Games this year. In the investment world, there are now several funds that invest in China but, in contrast, there are very few funds that invest in a country which has just as much and arguably more potential – India. […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment