Regional IFA Ludlow Wealth Management has completed a management buyout (MBO) after securing £8 million in investment from Mobeus Equity Partners.
The deal will also see ex-Threesixty managing director Phil Young join as chairman.
Founded in 1993, Ludlow Wealth Management has grown its assets under advice steadily over the last few years, going from £580 million in 2014 to £850 million. The firm has previously set its sights on £1 billion of assets.
Its founder Sid Ludlow has stepped back from day-to-day involvement in the firm as part of the MBO, which sees Mobeus Equity Partners provide £8 million through a combination of debt and equity in the firm.
The firm has already completed 12 acquisitions between 2008 and 2013, giving it a regional base of five offices and plans to continue to make acquisitions following the deal.
Mobeus Partner Chris Price, who led the deal, said there is opportunity for deals without using the consolidator method.
‘Ludlow Wealth has a strong track record of organic growth and successfully integrating acquisitions of different sizes,’ Price said.
'We believe that there is a place in the market for a consolidator who is not looking to push acquired clients into discretionary funds but instead provide focused advice services that deliver against the clients’ own goals.’
Ian Hemingway, managing director of Ludlow Wealth Management, said: ‘Ludlow takes pride in helping our clients make the right choices, enabling them to achieve financial peace of mind. This proven client focus is a key differentiator for the business and is increasing our market share, as well as making us an attractive acquirer for financial advisory businesses that share our passion for putting the client first.’
Young said it was encouraging that all of the parties involved in the deal were on the same page and did not have any ‘daft’ ideas about what the firm could achieve.
'It’s a question of scaling up nicely and everything I could see in terms of Moebus’ plans and Ludlow's plans were completely in line with one another and no one has made up any daft projections about what is going to happen,' he said. 'It just looks very predictable and very doable.'
He added: ‘The advice sector is full of M&A activity and the booming retirement market means that will continue for some time to come.’