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Private equity firm takes majority stake in Succession

Succession Group has sold a 50.1 per cent stake in the company to Inflexion Private Equity.

The remaining 49.9 per cent of Succession is owned by DFM Spearpoint and the Succession management staff. They take a diluted shareholding following the deal. 

The new dea will see funding made available through until 2017 for ongoing acquisitions.

Succession operates an acquisition strategy based on adding member firms before acquiring them once they have integrated Succession’s processes and criteria. 

Group chief executive Simon Chamberlain says: ”Having a majority shareholder with the credentials of Inflexion demonstrates the power of the Succession model.  We came into the market-place less than 5 years ago and today we have 62 member firms which advise on over £8bn of assets. 

”The Group owns an open architecture platform, which administers over £1.7bn of assets; volumes are growing at 5 per cent per month.  Our business is on target to achieve its goal of acquiring the best 50 of our member firms between now and 2017.”

Succession’s business objective is to reach a ”capital event”, either a sale or flotation, before 2018 following the consolidation of adviser firms.

It has so far completed 5 acquisitions with more planned this year.

Inflexion partner Richard Swann says: ”We have been looking for a model to support in the post-RDR advisory space and were impressed by Succession’s ‘back to front’ consolidation model.  Succession’s proposition addresses the fundamental difficulties of the past – where consolidators have acquired IFA firms but have struggled to demonstrate that they can consolidate them effectively. 

“Succession’s model is completely different to this, Succession works with its member firms to consolidate their businesses first and at the point of alignment, acquisition takes place.  In addition, Succession’s unique model of administering assets captures capital value, as the Group achieves scale.”

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Comments

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  1. Well you’ve got to hand it to Chamberlain. He’s just trousered another packet.

    TIme to go to Switzerland or Jersey?

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