Wealth Management M&A

Park Place are pleased to have advised the management team at The Progeny Group on the recent deal which has seen US private equity firm, Further Global, take a majority stake in the business.

The transaction marks the start of the next phase of development for the group, as the management team look to accelerate the business’ organic and acquisitive growth.

There is considerable interest in the UK wealth management and IFA sector which is seeing significant consolidation and private equity investment. This activity is being driven by a number of factors.

The M&A activity in the industry has continued despite the COVID-19 pandemic, with figures showing that 2020 was a record-breaking year with 122 deals completing in the UK. 2021 shows no signs of a slow down. The pool of acquirers demonstrates that there is also considerable overseas interest, particularly from US private equity, with some of the more notable transactions including:

  • Schroders £230m acquisition of River and Mercentile Group
  • Further Global’s majority investment in Progeny
  • Cinven’s £1.8bn acquisition of True Potential
  • M&G’s acquisition of Sandringham Financial Partners
  • Lloyds Bank’s £390m acquisition of Embark Group
  • Lightyear Capital’s £66m acquisition of Wren Sterling
  • Preservation Capital’s £102m acquisition of Parmenion
  • Flexpoint Ford’s £231m acquisition of AFH Wealth Management
  • Jupiter’s £236m acquisition of Merian Global Investors

Further Global’s acquisition of a majority stake in Progeny is another example of US private equity interest in the sector. Max Baumrin, a partner at Further Global, is quoted as saying “Having looked at this sector for a number of years now and having looked at a number of competing platforms, we could not be more impressed with the strength and cohesion of the business that Progeny has been able to build to date. We look forward to providing Progeny with the capital and analytical help it will need going forward to continue to build upon Neil’s vision of creating the UK’s best professional advisory firm.”

It will be interesting to see how long this heated market lasts for, and from a private equity perspective where the ultimate exit for these consolidated groups will emerge. Only time will tell….

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