News

9
Apr

Fairstone signs up two more advisory businesses to its DBO model as part of expansion programme

The two firms, Brett & Randall Financial Services and Chilli Financial, will bring in excess of £250m of assets under management as they join Fairstone’s Downstream buy-out programme (DBO). This model sees Fairstone adapting to the firms and gaining a sense of how they operate, before buying them out in full, with full integration having occurred.
Brett & Randall, a Leicester-based firm, was set up more than 35 years ago, and collectively have over 180 years in experience between the team; the company advises on a large number of company pension schemes.
The second firm, Chilli Financial, is based in Stockton-on-Tees, Middlesborough – they were founded 65 years ago. They advise both corporate and private clients
Collectively, the two firms bring with them 13 advisers and support staff, with combined revenues of around £1.9m.
Ian Robinson, who resides as Principal at Chill Financial, said: “The financial advice market is changing rapidly and we have recognised for some time that we need to put in place an effective plan to ensure we can continue to provide our clients with a high level of service in the future.
“It was clear that Fairstone shares similar values to us and a common view on how financial advice should be delivered.”
Fairstone express the aim of nine acquisitions of this nature over the course of this year. Fairstone currently service around 41,000 private clients, managing more than £8.1bn in investment and pension assets.
 
Lee Hartley, chief executive at Fairstone, said: “These agreements are very significant not only because of the strength of these businesses but the expertise and experience these mature companies can bring to the group.”
Ralph Mitchell, principal at Brett & Randall, said: “We undertook significant due diligence and believe there was no other proposition which matched Fairstone’s offering.”
If you’d like to understand more about Fairstone’s Downstream Buy Out model and similar propositions in the market, contact gwill.evans@gunnerandco.com