Bestinvest acquired by the Permira Funds

06 November 2013
 

Bestinvest, the UK wealth manager and online investment service, announces today that it has agreed to be acquired by a company owned by the Permira funds for an undisclosed sum. The transaction, which is subject to regulatory approval, is expected to complete in the first quarter of 2014.

Founded in 1986, Bestinvest is a dynamic and fast-growing UK private client investment group that is dedicated to rigorous and unbiased investment research and which has a relentless focus on excellent client service and the highest levels of professionalism.

Bestinvest provides a broad range of services for private investors whether they choose to make their own decisions or require investment advice, financial planning and investment management. Bestinvest’s expertise and strong client service culture have been recognised in numerous awards, including Wealth Manager of the Year and Best Wealth Manager for Investments in the 2013 Investors Chronicle and FT Wealth Management awards. Bestinvest’s clients trust it to look after some £5 billion of their assets.

The UK wealth management industry offers attractive growth dynamics with assets increasing in excess of 10% annually in recent years*. Despite recent consolidation it still remains very fragmented with a long tail of subscale firms with under £3 billion of client assets. The Permira funds will back Bestinvest’s plans to capitalise on the “advice gap” resulting from the Retail Distribution Review and will also help Bestinvest participate in the on-going industry consolidation.

Peter Hall, Chief Executive of Bestinvest, said: “The success of our business has been firmly built on our impartiality and expertise in research and offering the highest standards of professionalism and client service at great value-for-money. In looking for a partner to support the future growth of the
business, the Permira funds stood out from the crowd in their understanding and appreciation of our distinctive ethos and their commitment to invest in the management team’s growth strategy.”

“The introduction this year of the Retail Distribution Review, which has replaced commission-based advice in the UK with transparent fees, has presented Bestinvest with an excellent opportunity for both organic growth and potential acquisitions.”

“With the banks withdrawing from the advice market and many investors baulking at fee levels, we are incredibly well-positioned to support investors both through our Online Investment Service, which is aimed at those who choose to make their own decisions, and our growing regional network of financial planners who can help those who do require a trusted adviser.”

Mike Covell, Chairman of Bestinvest, added: “We are hugely grateful for the support that Bestinvest has received from 3i under its period of ownership which has seen the business develop very successfully over the last few years. As we enter the next phase in our growth, I am delighted that we do so with complete continuity of the senior management team and with the Permira funds, who we have known for several years, as our partner.”

Ian Lobley, Partner at 3i, commented: “During 3i’s investment, Bestinvest has been transformed as a business and continued to grow, despite some challenging times in the financial markets. Today Bestinvest has around £5bn of funds under management and a strong reputation in the industry. As Bestinvest enters a new phase of development we thought now was the time for us to realise the value created with the management team and introduce a new partner to support the company’s future growth.”

Philip Muelder, Partner at Permira, added: “Bestinvest is a fast-growing and award-winning company in the attractive UK wealth management market, providing a range of services to support clients across their whole lifetime whether they need advice, portfolio management or choose to make their own decisions. The business is in a strong position to play a key role in further industry consolidation and we look forward to backing Peter Hall, Mike Covell and their team in this exciting next phase of growth.”

Bestinvest and 3i were advised by Evercore and Macfarlanes. Permira were advised by Fenchurch Advisory Partners and Freshfields Bruckhaus Deringer. Bestinvest’s management were advised by Jamieson Corporate Finance and DLA Piper.

* Source: Compeer.co.uk

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About Bestinvest
Founded in 1986, Bestinvest has grown to become a leading private client investment adviser, looking after £5 billion of assets for more than 50,000 clients. We offer a range of investment services from Select for self-directed investors to Investment Advisory and Investment Management services for clients who do not have the time or inclination to manage their own investments.

All of our services are underpinned by rigorous research aimed at identifying those fund managers we believe will deliver long-term superior performance. We also have a team of expert financial planners with nationwide coverage to help clients with their pensions, retirement or Inheritance Tax planning. At Bestinvest, we pride ourselves on offering the highest levels of professionalism and expertise with transparent, competitive prices. We are pleased that our greatest source of new business is from personal referrals from existing clients.

Bestinvest has won numerous awards including UK Wealth Manager of the Year 2013, Best Wealth Manager for Investments 2013, Best Stockbroker for Customer Service 2012 and 2011 Self Select ISA Provider of the Year as voted by readers of the Investors Chronicle and the Financial Times. Bestinvest’s Select service was recently ranked as the highest-scoring investment platform when judged on cost, service, range of features and breadth of investment choice by specialist consultancy The Platforum.

Headquartered in Mayfair, London, Bestinvest employs more than 200 staff and has an extensive network of regional offices. For further information, please visit: www.bestinvest.co.uk

About 3i Group
3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas. For further information, please visit: www.3i.com

About Permira
Permira is a European private equity firm with global reach. The Permira funds, raised from pension funds and other institutions, make long-term investments in companies with the ambition of transforming their performance and driving sustainable growth. Founded in 1985, the firm advises funds with a total committed capital of approximately €22 billion. The Permira funds specialise in investing in five key sectors: Consumer, Financial Services, Healthcare, Industrials and TMT. The funds are currently invested in two financial services companies in the UK, Acromas and Just Retirement. Permira employs over 120 professionals based in Frankfurt, Guernsey, Hong Kong, London, Luxembourg, Madrid, Menlo Park, Milan, New York, Paris, Stockholm and Tokyo. Permira endorses the ILPA Private Equity Principles. For more information visit: www.permira.com

About Tilney

Tilney is a leading investment and financial planning group that builds on a heritage of more than 180 years.  Our clients are private investors, charities and professional intermediaries who trust us with over £23 billion of their assets. We offer a range of services including financial planning, investment management and advice and, through our Bestinvest service, a leading online platform for those who prefer to manage their own investments.

We have won numerous awards. Tilney has been awarded Best Conventional Advisory Service at the 2018 City of London Wealth Management Awards, Best Advisory Service in the 2015 City of London Wealth Management Awards; Investment Award – Cautious category in the Private Asset Management Awards; and Stockbroker of the Year, Execution-only Stockbroker of the Year and Self-select ISA Provider of the Year 2015, as voted by readers of the Financial Times and Investors Chronicle. Bestinvest was voted Best SIPP Provider and Best Fund Platform at the 2017 City of London Wealth Management Awards, Best Direct SIPP Provider at the YourMoney.com Awards 2017, Best Stocks & Shares ISA Provider at the 2017 Shares Awards, as well as Best Self Select ISA Provider, Best Online/Execution-only Stockbroker and Best Investment Platform 2017 at the FT and Investors Chronicle Investment and Wealth Management Awards, as voted by readers of the FT and Investors Chronicle.

Headquartered in Mayfair, London, the Tilney Group employs over 1,000 staff across our network of 30 offices, enabling us to support clients with a local service throughout the UK.