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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 as it lines up three further acquisition deals.

The other 49.9 per cent of Succession is owned by discretionary fund manager Spearpoint and Succession management, who both take a diluted shareholding following the deal.

Group chief executive Simon Chamberlain says the investment will help finance the £140m he says will be needed to acquire 50 member firms.

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

Chamberlain says: “Our plan is to get to £110m of turnover, compared with £65m today, and if we achieve that I believe the company will be worth far in excess of £500m.

“Having a majority shareholder with the credentials of Inflexion demonstrates the power of the Succession model.  We came into the marketplace less than five years ago and today we have 62 member firms which advise on £8bn of assets.”

Succession’s business objective is to reach a “capital event” in 2018 following the consolidation of adviser firms.

The company completed its acquisition of five firms last year and Chamberlain says three are expected to follow in February.

Clear IFA director Howard Bullock says: “The IFA model has been hard to upscale profitably without harming the client. If Succession achieves that, then congratulations will be in order.”

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