OakNorth has provided a £4m revolving credit facility (RCF) to UK wealth and investment management group Verso, supporting the business as it continues to pursue an acquisition-led growth strategy.
Verso was established in 2021 with backing from private equity firm Cairngorm Capital Partners and has since developed a national platform combining financial advice and discretionary investment management.
The group has completed nine acquisitions to date and now operates from offices in Solihull, Liverpool, Glasgow, Brighton & Hove, Henley-on-Thames, London (Head Office) and Sunderland
Verso manages approximately £2.75bn of client assets and generates the majority of its income from recurring advisory and investment management services, providing a predictable revenue base as it continues to expand.
The £4m RCF will be used to support working capital requirements and provide additional flexibility as Verso continues to acquire independent financial adviser (IFA) firms that align with its existing proposition.
Alan Mathewson, chief executive officer of Verso said: “Verso has been built to provide advisers and clients with a modern, integrated wealth management platform that delivers both scale and personal service. OakNorth’s flexible approach and deep understanding of the wealth management and professional services sector make them a strong partner as we continue to selectively grow through acquisition. This facility provides additional capacity to support our long-term strategy while maintaining a prudent capital structure.”
Stuart Blair, senior director of Debt Finance at OakNorth said: “The UK financial advisory sector continues to benefit from strong structural tailwinds, with industry forecasts pointing to growth of around 2.4% per annum through to 2030. Verso is well positioned to capitalise on this demand through its vertically integrated model, strong recurring revenues and proven acquisition strategy, and we’re delighted to support the business with flexible funding as it continues to scale. The group’s experienced management team and disciplined approach to integration further underpin its ability to grow sustainably while maintaining a high-quality client proposition.”
