Bristol-based Wealth Club says its believes the move will create the UK’s largest tax advantaged investment platform for high net worth and experienced investors.
Clubfinance was set up in 2002 and provides access to EIS, VCT, investments, pensions and stock-broking intermediation offering. It is a significant player in the VCT market.
The deal will increase Wealth Club’s client base to more than 8,000 clients and assets under influence to over £435 million.
Wealth Club expects that the Clubfinance business integration into its platform will be straightforward. Clients will be able to apply online for VCTs and EIS and be able to see all new investments in one place on Wealth Club’s online portal.
Alex Davies, chief executive and founder of Wealth Club, said: “We are delighted to have reached this agreement that will see Clubfinance being integrated into Wealth Club. Clubfinance fits perfectly with what we do and the acquisition supports our progression towards becoming the investment platform of choice for HNW and experienced investors, with best-in-class service, choice and research.”
“We believe with the pension restrictions beginning to bite as well as the new dividend tax and the crackdown on buy to let, demand for the products we offer (which is already very strong) is about to rocket.”
David Scrivens, director of Clubfinance says: “We felt that combining the scale and success of Clubfinance with the strategic might of Wealth Club was in the long term best interests of our clients."
Clubfinance will be run from Wealth Club’s head office in Bristol. All existing Clubfinance employees will be transferred to Amberside Financial, which, among other things, provides services to Amberside Capital (an FCA-regulated fund manager), and Amberside Energy Ltd (a developer and asset manager of energy schemes), which is not part of the deal.
Adalou Capital Advisors acted as exclusive financial adviser to Wealth Club in connection with the transaction.
• Editor's Note: Picture updated with new image 5.30 pm 10.01.18