BlackRock, one of the world’s biggest fund managers, has taken a 5% stake in growing Financial Planning group AFH which has acquired over a dozen advisory firms this year.

US-owned BlackRock has become a new investor in the firm and secured 1.9m shares (a 5.06% stake) of the West Midlands-based business which is led by Chartered Financial Planner Alan Hudson. At AFH’s current market capitalisation of £103m the stake would have cost about £5m.

The share purchase makes BlackRock one of AFH’s top 5 shareholders. The biggest shareholder is AFH chief executive Alan Hudson who owns 17.44% of the business worth around £17m.

BlackRock, along with other potential investors, was approached during the last round of fund raising for the business in November when the company raised £17m to fund organic growth and acquisition.

Other significant investors in the firm include Mr Hudson’s fellow directors as well as Slater Investments, River and Mercantile UK Micro Cap Investment Company and Polar Capital.

AFH chief executive and Chartered Financial Planner Alan Hudson told Financial Planning Today: “We see the continuing support of BlackRock and other institutional investors as a vote of confidence in the group and our strategy of combining very healthy organic growth with selective acquisitions of businesses that share our client-first vision.

“It’s a strategy that gives us better purchasing power and allows us to attract top talent to our adviser team, as well as expanding our in-house expertise and support for advisers and clients.”

AFH has bought over a dozen, mainly small Financial Planning and IFA firms this year. In one of its latest takeovers it bought J W Wealthcare, based in Chichester for £1.1m. AFH also recently acquired Colchester-based Financial Planner Britton Financial for £2m in November.

AFH, founded by Chartered Financial Planner Alan Hudson, serves almost 9,500 clients with £2.7bn under management. The company was founded by Alan Hudson in 1990 and is based in Bromsgrove, Worcestershire. Its turnover in the financial year to October was £33m, up from £24m the year before.