LV= has abandoned plans to buy Sipp and Ssas provider Hornbuckle Mitchell.
In June, Money Marketing revealed Hornbuckle had started a search for a “strategic partner” to inject capital into the firm due to concerns that increased FSA solvency requirements could scupper growth plans. In August, Hornbuckle entered final talks with LV= and three other parties over a possible takeover deal.
Money Marketing understands the LV= deal fell through after it raised concerns about investments Hornbuckle has been linked to.
Hornbuckle’s shareholders were understood to be worried about the effect that a deal with a bigger provider would have on the business.
It is now in talks with several private equity firms.
LV= life and pensions managing director Richard Rowney says: “It is not the right acquisition for us at the current time.”
Wingate Financial Planning director Alistair Cunningham says: “It is inevitable that Hornbuckle will lose some control over strategy, even if it finds a private equity buyer.”