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True Potential put up for sale

Platform, fund management and advice business True Potential has been put up for sale, in a deal that could be worth up to £2bn, according to Sky News.

It is reported True Potential has appointed bankers from Perella Weinberg Partners to deal with offers from prospective buyers.

The company is owned 739 individual partners, with a minority stake held by US private equity firm FTV Capital.

The vertically integrated company made a profit of £24m last year, with a turnover of £99m.

In a statement to Sky News, a True Potential spokesman said: “2017 was an exceptionally strong year for True Potential and that performance has accelerated throughout 2018, in an industry that is also growing fast.

“It is inevitable that there would be interest in the company.

“True Potential has appointed Perella Weinberg Partners to consider and advise on the domestic and international interest that has been shown in us.”

In April this year True Potential announced it was dropping its contract with SEI in favour of developing its own in-house technology.

True Potential senior partner Daniel Harrison said the decision to build the firm’s own technology will open up “powerful opportunities for the platform moving forward”.

The news follows a number of platform companies making or announcing sales in 2018, including Transact, Nucleus, AJ Bell and technology provider FNZ.

Sky News notes True Potential’s high values to earnings ratio that would come with a £2bn valuation as consumers increasingly make use of digital platforms.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. Really? 83 times the profit, whoever pays that must need their head examining?

  2. Aegon sound like a good bet!

  3. Good luck with that one

  4. Tell em their dreaming.

  5. 83 times profit with a platform to build… Wonder what that would cost these days…

  6. Sounds to me like cloud cuckoo land.

  7. Maybe the profits have increased 6 months 2018, forward multiples. Say profit is 40m for 2018 then it would be 50x.
    Would that be extreme for a Fintech company that doesn’t use 3rd party technology. I read recently TP yield 0.89% on AUM on platform the highest in the industry against Aegon 0.12%.
    I would think this would be interesting to investors.

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