Synova invests £25m in Fairstone

According to Synova, the IFA market has been growing at around 8% per year, with UK IFAs generating total revenues of £3.8bn. The market is highly fragmented, with around 11,000 IFA providers.

Following the investment, Synova will support Fairstone's consolidation strategy. The deal followed three years of tracking by the GP.

Synova closed its third fund on its £250m hard-cap in January 2016 after less than three months on the road.

Company
Established in 2008, Newcastle-based Fairstone is an independent financial adviser consolidation platform. It currently encompasses 260 IFAs across the UK, providing financial advice to around 25,000 private clients.

The company uses an in-house technology platform to facilitate front- and back-office functions and adhere to regulatory requirements. It also helps IFAs with lead generation. Fairstone's ideal IFA company size is of between 3-16 advisers.

The company generates revenues of £32m.

People
Synova Capital – Alex Bowden (partner).
Fairstone Group – Lee Hartley (CEO).

Advisers
Equity – Cavu Corporate Finance, Shawn Bone, Thomas Brusnes (corporate finance); PwC (financial due diligence); CIL (commercial due diligence); Intuitus (IT due diligence); Pinsent Masons (legal); Muckle (legal); Deloitte (tax).

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• Topics
• Buyouts
• UK / Ireland
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• Synova Capital