Destini buys stake in Bloomsbury and may increase holding

IFA consolidator Destini Financial Services has taken a minority stake in feebased IFA Bloomsbury Financial Planning.

The deal struck between the consolidator and Sofa director Jason Butler&#39s company of seven RIs is for an undisclosed amount in cash and shares. It is a two-part deal that leaves Destini with the option to buy a bigger chunk of Bloomsbury at a later stage.

Destini has bought six firms since its October 2002 launch, most recently snapping up Bridgeman Firth Associates and Mansion House IFAs.

Excluding Bloomsbury, it now has 31 RIs, which brings it closer to its original target of 50 RIs before the end of the year.

Bloomsbury managing director Jason Butler says: “The rationale behind the deal is that it gives us extra capital to expand our business. It gives us the opportunity to concentrate on fee-based advice and will give us extra clout to get in on wrap products and IT deals. There is a bit of a land-grab going on and Destini are very keen to acquire as much of it as possible.”

Destini chairman and chief executive Barry Parsons says: “Taking a stake in Bloomsbury is a logical extension of the group&#39s consolidation plans and will strengthen the Destini proposition at the top end of the advice market.

“It will expand our commission and fee-based model and bring access to staff with excellent technical qualifications.”