UK-based financial planning group Tilney has agreed to acquire the wealth management business of Moore Stephens, a UK accountancy and advisory firm, by way of a “business transfer agreement”.
The firm has also agreed to acquire Midlands-based Index Wealth Management, subject to regulatory approval.
Moore Stephens
The Moore Stephens Wealth Management team provides bespoke financial planning and investment advice to personal, corporate and trust clients with combined assets under advice of £340m ($431m, €378m).
The transaction will see eleven Moore Stephens staff based in London move across to Tilney, five of whom are advisers.
Chris Woodhouse, chief executive of Tilney, said: “This is a very high quality and professional business that will add further strength to our team in London.
“Tilney has established excellent connections with a number of major accountancy and professional services firms and we now look forward to developing an ongoing relationship with Moore Stephens over the coming years.”
The team includes two partners of Moore Stephens: Stephen Humphreys, head of the Moore Stephens wealth management division, who has been with the firm since 1989, and James Springham, who has been with the business since 1999.
The team will continue to work closely with Moore Stephens following the transfer to Tilney, supporting clients of the firm who require financial planning and investment management services.
The financial terms of the deal were not disclosed.
Index Wealth Management
Established in 2004 by Les Phillips and Noel Farrelly, Index is a wealth management firm based in Sutton Coldfield.
The firm has twelve staff, including three Chartered Financial Planners, three para-planners and a client service support team.
Woodhouse added: “Index is a great business which has earned a reputation for exceptional client service and is a really strong cultural fit with us.
“We have been expanding our presence in the Midlands in recent years and this acquisition will further cement Tilney’s position as the leading wealth management firm in the region.
“We will continue to explore acquisition opportunities right across the UK with high quality businesses who can see the benefits that our scale can bring in terms of infrastructure and support, enabling them to focus on delivering a very personalised and professional service to their clients.”
The financial terms of the deal were not disclosed.
Natural home
Phillips said: “We are very proud of the business we have built over the last 14 years but have also been thinking carefully about the future.
“Over time we have come to recognise the benefits of becoming part of a bigger group, with significant resources.
“We have got to know Tilney really well and have been impressed by their ethos of professionalism and putting clients first.
“Tilney also has real breadth and depth in its investment approach and the flexibility to accommodate our focus on using passive funds. Tilney is a very natural home for us.”
Index Wealth Management provides holistic financial planning and investment advice to a client base comprising entrepreneurs, professionals and high net worth individuals.
The firm supports clients with combined assets under advice of £243m.
Stonehage Fleming
In other news, investment trust company Caledonia Investments has agreed to acquire a minority share in multi-family office Stonehage Fleming.
The transaction has been approved by both boards and by Stonehage Fleming shareholders representing 91.8% of shares.
Completion is expected early in 2019, following formal shareholder and regulatory approvals.
Giuseppe Ciucci, group chief executive of Stonehage Fleming, said: “Caledonia, as a permanent capital investment vehicle, has an excellent record of supporting businesses over the long term and providing wise counsel to the management teams it backs.
“They intend to make capital available to us to further invest in our people, our proposition and in strategic development that will augment our organic growth and consolidate our leading position as a trusted advisor to wealthy families.
“Their investment will also enable a transfer of equity to our next generation of business leaders, ensuring we continue to attract and retain the right calibre of staff. This will all be to the benefit of our clients.
The financial terms of the deal were not disclosed.
Details
Caledonia’s investment in Stonehage Fleming will represent approximately 36.7% of the firm’s equity, with management and staff remaining the largest shareholders with approximately 50%.
As a minority shareholder, Caledonia will provide additional resources and expertise to help grow the business both “organically and through acquisition”.
Stonehage Fleming will be led by the current management team who retain day to day operational independence and autonomy, with the current partners continuing in their roles.
Two members of the Caledonia investment team will join the board.
The firms said leadership will increase amongst the “next gen of Stonehage Fleming management, who will also receive additional equity incentives as part of the transaction”.
Duncan Johnson, head of unquoted investments at Caledonia Investments, added: “Stonehage Fleming has developed a very talented, collegiate team we like and respect, and is committed to the continuous progression of its capabilities.
“As an owner alongside management, our focus is on being a long-term supportive partner, working jointly with Stonehage Fleming to ensure the business continues to grow and develop whilst maintaining its strong culture and delivering excellence for clients.”
