UK private equity firm CBPE Capital is making a “major investment” in Newcastle-headquartered Perspective Financial Group, subject to approval from the Financial Conduct Authority.
The financial terms of the deal were not disclosed.
CBPE is partnering with Perspective’s management team, who are all re-investing in the business, to carry out the firm’s growth plan.
Perspective is a financial planning and wealth advisory business, which operates from 15 offices across the UK employing 180 staff, including 55 advisers.
It has £2.8bn ($3.7bn, €3.3bn) in assets under management.
Richard Thompson, director at CBPE, said: “We look forward to supporting management as they deliver on the strategy which combines a continued focus on providing high-quality advice to their existing client base, growing organically and making selective acquisitions.”
Since it was founded in 2008, Perspective has acquired 35 IFA businesses, including four in 2019.
Its latest purchase was Goodman Financial Planning for an undisclosed sum in July.
Accelerate growth plan
Ian Wilkinson, group managing director of Perspective, said: “CBPE is the right partner for us as we enter the next stage of our development.
“They have a proven track record in the financial services space and have helped build some great companies.
“In CBPE, we have found a partner that will help us accelerate our growth strategy.”
Private equity boom
Over the last few months, there has been an increase in private equity firms looking to enter the financial advice market.
Most recently, Washington DC-headquartered Carlyle Group agreed to acquire UK-based firm Harwood Wealth Management for around £91m.
Also, Mobeus Capital Partners has been backing Ludlow Wealth Management with its acquisition pipeline, including help with its latest M&A deal, Ivan A Hargreaves & Co.