Private equity giant weighs Tenet bid

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Tilney Bestinvest owner Permira is weighing up buying Aviva and a group of small shareholders out of their stakes in Tenet, Money Marketing understands.

Last week Money Marketing revealed Aviva wants to sell its share in the network but fellow shareholder Standard Life is blocking a deal that would see Old Mutual Wealth-owned Intrinsic acquire the firm.

It is believed Standard Life bosses are concerned assets would flow out of its products and into Old Mutual Wealth funds if the deal went through.

It has now also emerged that private equity group Permira – which acquired and merged wealth managers Tilney and BestInvest in 2014 – could enter negotiations to buy Aviva’s 47 per cent stake and the 6 per cent held by minority shareholders.

Former directors of Tenet member advice firms were given shares as parts of acquisition deals over the years. However, it is understood the group has never been paid a dividend and are keen to sell their shares.

A deal would give Permira a majority of shares over Standard Life and Aegon, who own 25 and 22 per cent of the network respectively.

Figures published in January show turnover at Tenet increased by 9 per cent to £136m in 2015, while earnings grew by 15 per cent to £1.5m as it recorded a pre-tax profit of £471,952 for the year to 30 September 2015, up 32 per cent on 2014.

The group’s mortgage and protection business TenetLime saw a 48 per cent increase in turnover while the appointed representative business TenetConnect increased the number of advisers on its book by 5 per cent.

Tenet, Aviva and Permira could not be reached for comment.