London & Colonial eyes management buyout

Adam Wrench London & Colonial

Sipp firm London & Colonial is planning to launch a management buyout of the company, Money Marketing can reveal.

Last year Money Marketing reported L&C had approached other Sipp providers about a possible sale, but it has since decided to raise new cash to fund an acquisition and buy out minority shareholders.

Head of Product Adam Wrench says:There are many of us within the business that see great potential for the future of the London & Colonial group and we are therefore in the process of obtaining new capital investment which we hope to have in place very soon. It has also been no secret that a few of our longstanding minority shareholders have wanted to exit the company in recent years.

“The MBO team are seeking to raise the new capital in order to develop the business, make a potential acquisition and expand distribution of its products and services. The company will also use some of the development capital to buy back shares from any minority shareholders that wish to exit.”

L&C was founded by chief executive Ken Wrench and chairman and Pinsent Masons head of strategic development for pensions Robin Ellison launched the firm into the Sipp market in 1995. It also offers SSAS and Qrops.

In December 2014 the firm launched its first guaranteed drawdown product in response to the pension freedoms.

New capital adequacy rules come into force from September 2016 which many predict will drive market consolidation.