A new London-based IFA consolidator, led by former S&W fund manager Ed Rosengarten (pictured), has bought his second consultancy firm.
MWA Financial, which is backed by a loan from alternative investment manager Triple Point, has acquired Prosperity Financial Advisors & Stockbrokers, its second acquisition as part of its plan to become a national IFA company.
In 2014, at the time, Prosperity had assets of around £ 50million, but saw itself as a consolidator of sorts, with big plans to grow and be recognized as a national brand.
MWA was formed by Campbell Banks in 2016, although it did not acquire its first Hertfordshire-based consulting firm, Eversley Wealth Management, until 2017.
Rosengarten, who had also been head of equities at M&G for 19 years, joined as executive chairman in January this year, having served as strategic advisor for the company since 2019.
Prior to joining MWA, he was Head of Funds at Smith & Williamson and, prior to that, Managing Director of M&G Equities.
Banks has over 25 years of experience developing advisory networks in Australia for companies such as ING, AXA Asia Pacific and AMP.
Prosperity’s purchase agreement brings MWA’s assets under advisory to £ 300million and the total number of advisers to 15. Prosperity will retain its own brand for the foreseeable future, while co-founders Mark Newman and Jasper of Zoeten will remain with the company until the transition is complete.
Buying from banks
MWA now plans to acquire a number of consulting firms over the next three to five years with funding from Triple Point, although the company is not disclosing the amount of funding it has received. Triple Point offers business loans ranging from £ 500,000 to £ 5 million, with interest rates ranging from 8-10% per annum.
Rosengarten said this funding model allows the company to be “very selective” in its acquisition approach.
“Other consolidators have some pressure to acquire private equity through their owners, but we don’t have that relationship with Triple Point,” he said.
However, banks have said the company aims to reach at least £ 1 billion in assets within three years.
‘The [acquired] the companies are not huge, but they are a very good starting point and we hope that over the next few years we will continue to build on this platform with a series of acquisitions, ”he said. declared. “We already have a few in the pipeline.
An acquisition is already pending FCA approval, which would bring its assets under influence to £ 450million by the middle of this year.
In terms of the investment proposal, Rosengarten said the acquired consulting firms are currently outsourcing the investment, but he intends to create an internal proposal for the group within the next year.
“Based on my experience, it is likely that we will pursue an internally managed portfolio solution for our clients and that we will pursue a directly authorized status. This is a journey that we will begin after this acquisition and work on over the next three to six months.
He claimed MWA would offer sellers something “ a little different from the competition ” by committing to provide independent advice, letting owners participate in the business and preserving the brand identity of the acquired businesses. .
“We don’t know if companies want to keep their own names. At the end of the day, we know that happy advisors make happy clients.