Keith Carby’s Caerus Capital Group is acquiring Paradigm Partner’s network arm Paradigm Financial Advisers.
The deal will see Caerus Capital Group take over the network’s 370 advisers across 110 firms, subject to FSA approval. Caerus Capital Group has around 185 advisers all of which are currently appointed representatives of PFA. Caerus will also take on PFA’s 35 support staff.
PFA managing director Stuart Cresswell will remain in his role.
Caerus will retain the Paradigm name for six months before rebranding. The new name has not yet been finalised.
PFA’s independent advisers will operate alongside Caerus’ restricted advisers within the network.
Staff were informed of the deal today.
Paradigm says it now intends to focus on its directly authorised propositions which include Paradigm Pensions, Paradigm Mortgages, corporate wrap Amber and recently-launched investment management firm Tatton.
Paradigm founder Paul Hogarth says: “Over the last six months it has become clear to the team and I that the network would be better served by a business whose future is more closely aligned with this area of the market.”
Carby (pictured) says: “When we struck an agreement with PFA in 2010, we made it clear we would be seeking regulatory permissions after three years. Paradigm’s strategic decision gives us the opportunity to make this move a few months earlier than planned.”
PFA posted a £336,000 pre-tax profit for the year ending 31 March 2011, compared to a pre-tax loss of £29,000 the previous year.
Caerus’ accounts for the year ending 31 December 2011 show the firm made a pre-tax profit of £1.2m compared to a £1.4m loss the previous year.
Adviser numbers increased 41 per cent to 185 from 142 in 2010 .