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Fairstone looks to acquire more IFAs after buyout success

Adivce firm consolidator Fairstone will look to expand after signing up two more financial planning firms to its downstream buy out programme.

Brett & Randall Financial Services and Chilli Financial will bring £250m in assets under management to Fairstone, and are the first entering its DBO programme this year.

The programme brings firms in at an entry level, gradually integrating them into Fairstone ahead of a full acquisition.

Commenting on the signups, Fairstone chief executive Lee Hartley says further full acquisitions are now in the pipeline for the firm.

He says: “We have seen enormous growth through our DBO programme in the past year, from IFA companies who recognise the strength of our proposition. Where we identify real quality in a business, we will work with those companies to achieve their growth targets, lift the regulatory burden and support them with marketing and client activation initiatives.”

“…We are always looking for ambitious, successful and dedicated IFA firms to join Fairstone and we can offer them a unique opportunity to expand their businesses through our unrivalled support structure.”

The deals with Leicester-based Brett & Randall and Stockton-on-Tees-based Chilli Financial bring 13 advisers and support staff to Fairstone, with combined revenues of around £1.8m.

Fairstone’s most recent full acquisition was Lincolnshire-based Zimb Johnson Bespoke Financial Planning in early March which brought £200m in funds under management.

Hartley told Money Marketing in February that Fairstone had between eight and 10 acquisitions in the pipeline for 2018, confirming its December 2017 purchase of Glaswegian IFA Professional Partners had completed through its DBO program.

Under its DBO model, Fairstone says it will not increase customer charging to fund acquisitions and clients will not be shuffled onto new platforms that are not in their best interests.

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