Founder and director Kevin Mudd says for advisers seeking to sell up in the near future, own funds can raise the price of their business. He adds that where firms are looking to aquire others, in-house funds can help raise additional capital.
Mudd says: “Planning ahead is vital and one way of increasing the value of an IFA’s business is to take greater control of funds under influence and make them truly funds under management. By setting up their own funds, IFAs can create embedded value by increasing their renewable income and this will, in turn, enhance their position.
“Along the way, clients will benefit as the funds that are recommended will more closely match the financial planning needs and risk profiles their adviser sees as best for them. Establishing funds thus enables IFAs to enhance their client service and to cement long-term relationships with the people they advise.”