Benchmark buys a consulting company and takes 49% of the capital of another

Benchmark Capital, the wealth management firm owned by Schroders, has completed the purchase of advisory firm Advison and acquired a 49% stake in financial planning firm Chartered Independent.

The acquisition of Milton Keynes-based Advison will see its owners move into the Benchmark business, where they will continue to serve their existing customers.

After running their consulting firm for nearly 20 years, the owners of Advison went the route of Benchmark’s firm buyout program.

The article continues after the announcement

Meanwhile, Chartered Independent – an existing member of Benchmark’s advisory network – will remain independent and use the investment to grow.

Benchmark said in an announcement today (November 22) that these deals “represent the next step” in a “strong pipeline of deals” that are expected to take place over the coming months.

In January, Benchmark bought advisory firm Redbourne Wealth Management, adding £310m to its clients’ assets.

In its announcement today, Schroders said the wealth management business – headquartered in West Sussex – held £17bn of assets under administration on behalf of more than 1,700 advisers financial at the end of August. It employs some 430 people.

The company did not disclose the value of the assets transferred from Advison’s deal.

Benmark chief executive Ed Dymott said the Advison and Chartered Independent deals were “two very different journeys for business owners”.

He continued: “Advison, who is joining our own financial planning firm and remaining with the business, while the owner of Chartered Independent, who was already familiar with Benchmark solutions as part of our network, were both looking for support to continue to develop.

“Our approach resonates strongly in the market with advisors, wherever they are in their journey; start-up, search for efficiency, growth or building a secure path out.

The purchase of Redbourne in January, like that of Advison, was an example of Benchmark’s strategy to expand its own consultancy business across the UK.

In 2016 Schroders paid £86m for a 65% stake in Benchmark Capital, which owns a financial planning firm, network and platform, but its chief executive Ian Cooke retained control of the company. because he held more voting shares.

In May 2018, Schroders increased its stake to 77% and thus became the “ultimate controlling party” of the company.

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