Fairstone Group has acquired Welsh advice firm DHD Wealth Management in a downstream buyout deal.
The transaction will involve Fairstone taking an initial minority stake in the advice firm and integrating the firm into its systems and structure eventually.
The deal would boost DHD’s total revenue by almost GBP1.5m and add funds under management of about £207m to its portfolio. Four advisers and five support staff will join Fairstone as part of the deal.
Fairstone Group CEO Lee Hartley said: “With such a strong focus on providing their clients with first-class service, we knew that DHD Wealth Management would be an excellent fit with Fairstone, both commercially and culturally.
“We look forward to working with the well-established team there to support their marketing, front and back office and client acquisition strategies in order to help them grow the business further.
DHD Wealth Management specialises in investment planning, pensions and IHT planning, serving 1450 clients. The firm is headed by Aled Davies, Clive Davies and Denise Jacob.
DHD Wealth Management principal Aled Davies said: “We joined Fairstone because they are an IFA which has a DFM arm, but does not expect firms such as ourselves to ‘shoe horn’ clients into their proposition.
“Having looked at many proposals, the Fairstone package appealed because we can ultimately complete this transaction yet continue to service our valued clients with whom we have a long term relationship. The fact that Fairstone will also help us recruit new entrants into the business to expand also appealed.”