The Money Portal and national IFA arm Bates Investment Services have gone into administration.
The MBO, first revealed by Money Marketing, will see Bates renamed Honister Partners.
Honister Capital will be run by existing management, led by chief executive Mark Lund.
Honister has assembled a five-strong board of directors, led by non-executive chairman Mark Tennant, Mark Lund, chief financial officer Bryan Levine and non–executive directors Mark Holloway and Anton Simon.
Honister is backed by Peter Simon, founder and owner of the retail group Monsoon Accessorize.
Simon was a non-executive director in The Money Portal but resigned in April due to a potential conflict of interest caused by the fact he had expressed interest in the firm. Honister says the new company has been structured with no bank debt to ensure that the business can develop with more flexibility than before.
As part of the transaction, Honister has signed a transitional service agreement with Ernst & Young, the administrators of The Money Portal and Bates, to ensure “continuity and stability” during the changeover.
Honister Capital chief executive Mark Lund says: “I am delighted that we have completed this transaction, which will allow our business to move forward on a solid and stable financial footing. Our goal is to offer the best possible service for IFAs and their clients, and enable us to consolidate our position as Britain’s leading independently-owned financial advisory group.”
Simon adds: “I am very pleased to be backing the management in this transaction. I believe these are first class businesses with a talented team led by Mark Lund. Honister Capital will provide the business with a far more stable financial foundation to develop and grow.
“I was a long term believer in the commercial potential of The Money Portal, and this investment will enable the new group to develop with a more appropriate capital structure and achieve its strategic objectives.”