Cheshire-based wealth manager, Equilibrium Financial Planning, has received a strategic investment from London’s Sovereign Capital Partners, which has acquired a majority shareholding in the firm, for an undisclosed sum.
It will lead to a buy-and-build programme that will extend Equilibrium’s offer nationwide.
The existing Equilibrium management team will retain a significant minority stake and continue to lead the business day-to-day.
Under the terms of the investment, Equilibrium, which marks its 30th anniversary this year, will retain its brand, its Handforth headquarters, and its highly personal, relationship-led service model.
There will be no changes for clients to their adviser relationships, portfolio approach, fees or service standards. No jobs are affected by the deal.
The partnership will support a national buy-and-build programme, using Equilibrium as the platform to expand into new regions, while migrating future acquisitions onto Equilibrium’s proven client experience, systems and operating model.
Colin Lawson, founder and managing partner of Equilibrium, said: “Our clients value continuity and care above all else and this investment safeguards both. The senior team remains in place, our brand remains and our service remains as personal as ever.
“With Sovereign’s backing we can bring Equilibrium’s relationship-driven approach to more people across the UK, while continuing to innovate in a fast changing market.”
James Dargan, partner, Sovereign Capital Partners, said: “The investment in Equilibrium is about backing a high quality business in a fragmented sector that is undergoing significant change.
“Given our knowledge of the sector, we have identified Equilibrium as a high quality business that has consistently focused on the client and employee value proposition.”
He added: “Colin and the team have demonstrated an ability to grow ahead of the market organically and navigate volatility. Our investment will support the business’s acquisition strategy, and facilitate further investment in the management team and technology infrastructure.
“We believe the winners will be those who combine deep client trust with the infrastructure and ambition to scale – Equilibrium is exactly that kind of business.”
The investment provides long term succession security for Equilibrium’s founder-shareholders, while positioning the business to scale its proposition nationwide.
