The Openwork Partnership has agreed a deal for US private equity firm Bain Capital to take a 30% stake in the business for £120m.
The FCA have approved the transaction, which also sees Bain Capital partner Elena Lieskovska join the Openwork board.
The proposed deal was announced in October 2024, with Openwork saying it wanted to breing in an investor to support its strategic growth plans.
There was close to full support for the transaction and strategy among Openwork partners, with 98% of votes cast being in favour.
Openwork has also agreed a new debt facility with Santander to provide an expanded £35m revolving credit facility.
The combination of incoming equity and debt will allow Openwork to accelerate its adviser succession and renewal programmes, it said.
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The money will be used to fuel development in key areas such as recruitment, adviser succession, enhanced adviser tools, new technology and data management capabilities.
Since inception in 2005, Openwork has grown to a network of over 4,800 advisers
Openwork had been 90% owned by over 1,300 partners since 2018, which includes the principals of the network’s 860 advice firms.
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Boston-based Bain Capital manages over $185bn of assets worldwide.
Philip Howell, Openwork CEO, said: “Since announcing our intentions to partner with Bain Capital, we have been working closely together in priming a programme of initiatives to accelerate our growth and enhance our offering.
“The strategy will firmly establish Openwork as the leading provider of holistic advice to clients and their families across the UK. With Bain Capital at our side, we are entering an exciting chapter with a real sense of optimism and growing momentum. There could not be a more fitting way to celebrate our 20th anniversary as The Openwork Partnership.”
“We are thrilled to formally close our investment in The Openwork Partnership,” added Lieskovska. “This marks the beginning of an exciting new chapter where we will work closely to leverage our combined strengths.
“Our focus will be on supporting Openwork’s growth and enhancing the experience for clients, colleagues, and shareholders through strategic initiatives and technology investments. We look forward to a successful partnership that will drive exceptional value and outcomes across the board.”
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