Fairstone eyeing growth after £4.1 billion boost

A national wealth manager says it is primed for further expansion.

Fairstone is in “advanced discussions” with financial operators to bolster its UK-wide network.

Bosses unveiled the bullish outlook after the Sunderland-headquartered company secured its 87th partner firm through its downstream buy-out programme, which allows business owners to work towards a sale at a future date.

They added it has now welcomed 29 partnership firms across the UK and Ireland over the last 24 months, which have added £4.1 billion of assets under management and 177 advisers to the group. 

It also fully acquired 11 businesses during the period. 

The update follows the recent unveiling of financial results that showed revenue grew 32 per cent in its 2023 financial year and funds under management topped £17 billion, increases the firm says have “laid the foundations for a new chapter across the next decade”.

Lee Hartley, chief executive, said: “Throughout 2024, we have welcomed some fantastic, growth-orientated firms through the downstream buy-out programme. 

“Our mission is to become the most trusted wealth advisory firm in the UK and Ireland.

“Over the last decade, every firm that has joined Fairstone through the downstream buy-out model has received no less than 100 per cent of their initial sale value, with many having achieved a great deal more. 

“Over the last two years, the average value received after earn-out has been 120 per cent, with the most successful firm hitting 180 per cent.”

He added the business, which has offices across England, Scotland, Wales and Northern Ireland, has now launched special purpose vehicle and start-up joint venture models to further boost its market reach. 

The former enables entrepreneurial principals, who have already taken their businesses through to full acquisition with Fairstone, to start, build and sell a new business of scale with infrastructure and capital support. 

The latter enables clusters of independent, self-employed or employed advisers to become business owners in partnership with Fairstone.

Lee added: “There are so many fantastic, employed advisers out there, whose hard work is creating capital value for others. 

“They are rightly nervous about the risk associated with setting out on their own. 

“We take away that risk, allow them to continue to do what they do best, and ultimately benefit from the significant capital value that they create.

“I am really looking forward to seeing what we achieve in the year ahead.”

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