Investment house Gartmore has taken a 12.11 per cent shareholding in IFA group Inter-Alliance through 21 of its funds.
The investment represents the aggregation of 21 funds managed by Gartmore and its subsidiary Fenplace.
Gartmore says it sees Inter-Alliance as an attractive investment because of its use of technology to improve productivity, its commitment to training and the company's culture and values.
Gartmore believes the success of the Inter-Alliance format can be seen in its development into a major player in the IFA market since its launch in 1994 and flotation on the Alternative Investment Market in 2000.
Inter-Alliance has 70 offices worldwide and a market capitalisation of around £200m.
The company says it offers the widest range of unit trusts, investment trusts and open-ended investment companies over the internet in the UK.
Gartmore UK small capital investments fund manager Gervais Williams says:
“Increased wealth and the decline of direct salesforces make the IFA sector a profitable one. Inter-Alliance has used its momentum to create opportunities to buy more companies and set up new offices.”