Palamon Capital Partners, the UK-based mid-market private equity firm, has invested in John Scott & Partners, a wealth management firm providing independent financial advice to high net worth individuals and currently managing assets approaching E400m.
The deal forms the basis of a buy-and-build strategy formed with Tony Strauss, previously managing director of UK mortgage broker Charcol, to develop a platform for establishing an independent financial advisory group on a national basis.
Palamon plans to build John Scott & Partners, which was founded in 1965, through “a rapid national expansion” involving organic growth and possible acquisitions.
The UK IFA market is highly fragmented with over 11,000 companies and 28,000 registered advisors. “We have earmarked up to E30m to finance the continued expansion of Toby Strauss’ vision,” said Palamon partner Miles Cresswell-Turner, who led the transaction. “The market conditions are now right to effect broader based consolidation of this highly fragmented industry.”
Palamon Capital Partners was founded in 1999 and aims to provide equity for European growth services companies. The firm has made investments in the UK, Italy, Spain, Denmark, Sweden, France and Germany and targets investments of between E20m to E50m in companies where it aims be the lead private equity provider. The firm has made investments in the financial services and media sectors, including investments in SAV Credit, which provides credit services to UK consumers and DAVID, an Anglo-German business which develops television and radio broadcasting systems.
The firm manages Palamon European Equity and its parallel funds, which together have capital commitments of E440m.