AFH Financial Group, the rapidly growing wealth manager founded by a Chartered Financial Planner, has bought a Hull-based financial advisory group for £10m in its largest ever acquisition, the group says.

The deal takes AFG Group’s total funds under management to more than £5bn.

AFH has made over 15 acquisitions this year.

Bromsgrove-based AFH will acquire Hull-based CTL Three group which has four offices in Yorkshire, taking the total AFH adviser team to 250.

CTL Three uses the trading names: Insurance Partnership Financial Services, Kirk Ella Investments, PCWM, IFA Professional Planning and Hallgarth Wealth Planning. It has offices in Hull, York and Scunthorpe.

CTL Three managing director Paul Hodgson will become AFH’s regional director for the north, a focus for recent AFH expansion and a region where it has acquired other firms recently.

Mr Hodgson, who joined the financial services sector from university in 1992, said: “The decision to join forces with AFH does not indicate the end of our ambitions - quite the opposite.

“We’ve grown to a size where the move to the next level would require significant investment. That left us either having to raise new funding or find the right business to join. We look forward to working with Alan and the team at AFH.”

AFH chief executive and founder Alan Hudson, a Chartered Financial Planner, said: “This is a historic deal for AFH. With £5bn now under management we have met one of our group 3-5-year objectives - after just 2 years.

“We are now established as one of the largest financial advisers in Yorkshire and the North East, and in his new role as regional director Paul will be looking to expand that presence even further.”

AFH has been listed on the London Stock Exchange’s AIM since 2014 and has a market capitalisation of around £165m.