There may not be many people in the UK independent financial adviser sector who know wealth manager AFH Financial Group but this could change in the next few years. The Bromsgrove, Worcestershire-based firm has been quietly building its business and made its 10th acquisition today since 10 June 2018.
It acquired Premier Wealth Management Harrogate, based in York, for £4.5 million ($5.86m) (€5.12m). This deal takes the firm’s assets under management to around £4.5 billion and its number of IFAs close to 220 across the UK.
Details of the deal
As a result of the transaction, Richard Evans, Andrew Huby and their support staff will join AFH, bringing over £90m of funds under management to AFH, a statement on the London Stock Exchange said.
Under the terms of the acquisition, the maximum purchase price is £4.5m dependent upon performance criteria of the business acquired. The initial consideration for the acquisition is £2m in cash, funded from the company’s existing cash resources.
Further deferred consideration will be payable in cash over the next 26 months, subject to performance criteria of the business being achieved.
Alan Hudson, chief executive of AFH, said: “The acquisition of Premier is the first transaction of our new financial year and continues the expansion of AFH in the North East.
“Premier has demonstrated high levels of profitable growth and I am pleased to welcome Richard and his team to AFH. I look forward to working with them for the benefit of our new clients and to increase shareholder value.”
Going forward, the firm has been carrying out its growth plan of acquiring IFAs and wealth managers all over the UK. Most recently, it acquired Core Financial Services in Kent in October, and Emery Little Financial Services in Wiltshire, Ashton House IFA in Bedfordshire, and LFS & Partners based in Devon during the month of September.
In October, AFH Financial Group, parent group of AFH Wealth Management, raised £15m by issuing new shares in a bid to raise capital to continue its acquisition strategy.
A source close to the firm told International Adviser that it should expect to be making more acquisitions in the coming weeks.
They said that AFH is “not concentrating” on particular regions across the UK but see themselves as more of a “national” group.
There is an “aspiration” to be to the number one wealth manager in the UK, according to the source. But it has a long way to go to compete with the likes of St James’s Place, which has around £96.6bn in assets under management and around 3,800 financial advisers.