The financial advisory arm of general insurance giant Towergate owns five small IFAs with 44 RIs. The £100m of funding has been provided by Royal Bank of Scotland, Lloyds
TSB Corporate Markets and Towergate’s management.
Chairman Patrick Snowball says it is in discussions with six IFA firms, with the next purchase to be announced in the coming weeks.
Snowball says the firm is looking for eight or nine key companies, making a profit in excess of £1m, to become its hub acquisitions. He says: “We will then work with these key companies to look to buy three or four firms in those regions making up to around £250,000 of profit a year. What we are bringing into the market is a national IFA which is well capitalised under a strong brand and with a predominantly employed RI basis.”
Snowball says Towergate Financial will spend £10m on creating a central model to consolidate the back-office systems of its acquisitions. He says the firm is in final discussions with Focus and Intelliflo to provide technology while Tata Consulting Services will be the third-party provider.