3i buys out Bestinvest(2)

The London-listed group has completed a management buyout of UK investment manager and financial advisor Bestinvest. It believes the prospects for organic growth are strong in a rapidly growing sector.

FTSE 100-listed 3i has bought UK investment manager and financial advisor Bestinvest for an undisclosed sum.

John Spiers, who founded the company in 1986, and the Bestinvest management team will keep their roles and retain significant stakes in the company.

Bestinvest advises on £3.7 billion of financial assets, and controls a further £1 billion through its high net worth discretionary investment management. It also has a fee-based financial planning service. The company was one of the first to offer a discounted fee structure for investment advice.

3i said it plans to grow the company organically. Partner Peter Gordon said:  “The overall wealth management market is growing rapidly with more people looking to invest and encouragement coming from the government’s desire for people to take more responsibility over their own financial investments.”

The company’s independent investment model, pricing transparency, use of technology, and high quality of research were the main attractions for 3i, he said.