Keith Carby’s Caerus Capital Group has announced plans to acquire Paradigm Partner’s network arm Paradigm Financial Advisers and increase average adviser earnings from £170,000 to £250,000 over the next three years.
The acquisition will see Caerus Capital Group take over the network’s 350 advisers across 120 firms, subject to FSA approval. Caerus will also take on PFA’s 35 support staff.
Caerus Capital Group has around 185 advisers, all of which are currently appointed representatives of PFA.
Speaking to Money Marketing, Carby says: “I am not interested in building up the number of advisers, I am more focused on increasing adviser productivity.
“Currently Caerus advisers have average earnings of £170,000 and I want to increase that to £250,000. If we can do that we will be in a different league to any scaled operation in the UK.”
Caerus will retain the Paradigm name for six months before rebranding. The new name has not yet been finalised.
PFA’s independent advisers will operate alongside Caerus’ restricted advisers within the network.
Paradigm says it now intends to focus on its directly authorised propositions which include Paradigm Pensions, Paradigm Mortgages, corporate wrap Amber and recently-launched investment management firm Tatton.
Paradigm founder Paul Hogarth says: “Over the last six months it has become clear to the team and I that the network would be better served by a business whose future is more closely aligned with this area of the market.”
Caerus’ accounts for the year ending 31 December 2011 show the firm made a pre-tax profit of £1.2m, compared to a £1.4m loss the previous year.
Adviser numbers increased 41 per cent from 142 in 2010 to 185 in 2011.