Global group to buy Financial Planner Harwood for £91m
Global private equity group Carlyle is set to buy the three-year-old, acquisitive Financial Planning firm Harwood Wealth Management for £90.7m in a recommended cash deal.
Harwood has about £5.3bn in assets under management and is listed on AIM. It has grown rapidly in recent years by acquiring Financial Planning firms, including Ascot recently.
Carlyle is a global investment firm with £170bn in assets under management in 365 investment vehicles. It invests across four segments - corporate private equity, global credit, real assets and investment solutions. It employs more than 1,775 people in 33 offices across six continents.
In the UK Carlyle owns a variety of firms including taxi and transport company Addison Lee and a dentistry chain.
Harwood Wealth Management Group was created in 2016 through the merger of Compass Wealth Management Group and Wellian Investment Solutions. Evercore Partners, the investment bank, is advising Harwood on the deal.
Harwood has made numerous acquisitions including announcing three at one time in July when it revealed it would take over Goldwyns Wealth Management Limited, Andrew Routley Pension Limited and Patricia Hodge IFA.
Carlyle will buy Harwood through a new company called Bidco run by Hurst Point Topco Limited, a newly formed company indirectly controlled by funds managed by Carlyle.
Hurst Point and Carlyle said they believe that the founders and management team of Harwood have built an "attractive business that provides a platform to execute their investment thesis, which focuses on combining various elements of the wealth management value chain with a view to delivering attractive propositions for clients, employees and other key stakeholders."
The companies aim to continue to grow the business organically and by acquisition by providing "capital backing, investment, strategic support and their global expertise as needed."
Peter Mann, chairman of Harwood, said: "We are pleased to announce this recommended acquisition by Carlyle and Hurst Point. The Harwood management team has demonstrated a strong execution track record, undertaking multiple acquisitions, growing profits and achieving a significant increase in the share price since our IPO in March 2016 at 81p.
"Looking ahead, the Board believes that Carlyle and Hurst Point will be excellent partners to Harwood, providing the capital backing, strategic support and additional resources and investment needed for the business to continue to grow."
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