Money Marketing understands that the enhanced annuity provider paid between £500,000 and £1m for its stake in Gateway, which was previously known as Sesame Solutions, valuing the business at between £1m and £2m. Sesame Bankhall has retained the other half.
The firms insist that Gateway’s 15 staff will continue to provide whole of market advice on pension transfers, income drawdown and equity release. It is now also offering advice on long-term care with Partnership one of the few providers in this sector.
The service was previously only available to Sesame IFAs but is being rolled out to Bankhall and PMS advisers. Commission will be split 50/50 with the introducing adviser and Gateway responsible for compliance and professional indemnity.
Sesame Bankhall Group chief operating officer Stephen Young says: “We expect demand for the service to keep growing due to the retail distribution review.”
Partnership managing director Andrew Megson says: “The at-retirement market is set to boom and our insight will help Gateway succeed.”
Directly Financial director Stuart Bayliss says: “Partnership is undoubtedly expecting to lock in meaningful distribution. Given the lack of long-term care providers, Sesame will effectively be a direct distribution line.”