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