So far this year seven advisory firms have joined Fairstone’s Downstream Buy Out progressive acquisition scheme, adding almost £1.2bn in funds under management.
The latest deal brings total funds under management at Fairstone to nearly £10 billion and funds under advice to almost £12 billion. Fairstone says it expects further deals before the end of the year.
Under Fairstone’s Downstream Buy Out (DBO) model firms are steadily integrated with Fairstone, typically over a two-year period, prior to final acquisition.
Chiltern House is based in Bracknell, Berkshire, and is a whole-of-market advice firm which focuses on investment and retirement.
The acquisition of Chiltern House adds 500 clients to Fairstone and Chiltern’s four advisers and seven support staff will join Fairstone, adding gross fee income of £2.6m together with funds under management of almost £400m.
According to Fairstone, Chiltern House has seen an 18% increase in profits and 8% growth in revenue over the last year as part of the DBO acquisition programme.
Lee Hartley, chief executive of Fairstone, said: “We are delighted to complete the final acquisition of Chiltern House, having worked closely with them throughout the integration phase.
“Finalising this deal with Chiltern House marks a very valued addition to our group and continues our scheduled growth plan for 2020.”
Chiltern House principal Keith Fisher said: “After 18 successful years in business and with retirement beckoning for two of the founding directors, we decided to join Fairstone to ensure the future success of the business and so that clients can continue to enjoy first-class service.
“Our decision to become part of a leading and highly respected national Chartered firm secures not only the long-term interests of our clients, but also the team at Bracknell and we look to the future with every confidence.”
Fairstone is based in Newcastle and has over 65,000 clients. It operates from 42 locations and has 370 regulated advisers and 280 operational staff.