The parent group of advice company Foster Denovo has secured up to £100m ($131m, €119m) of funding from US investment firm Crestline Investors.
The investment will fund Foster Denovo’s acquisition and growth strategy in a bid to build a national advice group. The transaction will see private equity company Crestline Investors take a minority stake in Foster Denovo.
The deal, which completed in February, has seen Foster Denovo undertake a series of initial acquisitions in the form of adviser practice buy-outs (PBOs).
The first wave of unnamed acquisitions will have an “immediate impact on the profitability of the business”, Foster Denovo said.
The firm added: “The funding from Crestline will be used to drive acquisitions across the UK over the next few years. A number of transactions are already in the pipeline.”
Roger Brosch, chief executive of Foster Denovo, commented: “We are delighted to have secured this new funding which will fuel our ambitious five-year growth strategy. Crestline is the perfect partner for us – we are culturally aligned and share an absolute commitment to deliver exceptional value to our clients, staff and shareholders.
“Crestline has a reputation for partnering with experienced management teams and investing in established businesses with bold expansion plans, and we look forward to achieving great things together.
“Over the next few years, we intend to utilise this funding, making a series of culturally compatible acquisitions acting as a facilitator for those practices and businesses who put the interests of clients and staff as their key priorities.
“We believe the flexibility of our approach will allow us to match the needs of the market, secure the highest quality of transactions for all parties and reinforce our reputation as a leading national advice brand.”