Tilney Bestinvest is eyeing an initial public offering (IPO) after it acquired Towry for £600 million.
The combined businesses have more than £20 billion of assets under advice. Following the deal the businesses will be led by Tilney Bestinvest chief executive Peter Hall (pictured).
Speaking to New Model Adviser®, Hall said Tilney Bestinvest would consider floating as the business would be the right size to achieve a good valuation.
‘I think we will be of a size when we can, and will, consider floating the business as one of the options,’ he said.
However Hall added there was ‘no particular timeframe around this’ as Tilney Bestinvest would first take time to merge with Towry.
Hall said the opportunity to float meant the £600 million Tilney Bestinvest paid for Towry was a ‘fair deal’ as it opened up the possibility for shareholders to get a return on their investment.
‘I think £600 million is in my mind a fair deal for existing shareholders, as well as a fair deal for future shareholders in that it leaves a lot of opportunity to create value from now on,’ he said.
Tilney Bestinvest will also look to acquire smaller advice and investment businesses around the country following the deal, according to Hall.
‘If we looking to a year’s time and beyond I will be interested in regional acquisitions to strengthen our business across the UK, but for me this is a transformational deal that takes us close to where we want to be,’ he said.
On Monday it was announced that private equity firm Palamon Capital Partners had agreed the sale of Towry to Tilney Bestinvest for £600 million.
The sale represents a total investment return for Palamon of 13 times invested capital.
Tilney was tipped to buy Towry back in February. Tilney is itself owned by a private equity firm, Permira.
In December it emerged Palamon had decided to sell the advice business after ditching plans for a float.