Adviser platform Nucleus has signed a deal to acquire Third Financial, a provider of white label investment platforms and software.

Nucleus says the acquisition, for an undisclosed sum, will increase Nucleus Assets Under Advice to around £90bn.

The acquisition will also give Nucleus the ability to offer ‘adviser-as-a-platform’ services, enabling adviser firms to offer their own white label platform, a fast-growing segment of the market.

The deal is subject to regulatory approval.

London-based Third Financial will continue to be led by existing chief executive Ian Partington.

Nucleus Financial Platforms currently has over £80bn of assets under administration for 250,000 customers and owns a number of subsidiaries including James Hay, Nucleus and SIPP provider Curtis Banks. 

Third Financial provides an investment platform and wealth management software. It serves discretionary wealth managers, multi-family offices and adviser consolidators.

Third Financial has seen growth in recent years with revenue increasing by more than 30% in 2023, it said. It has over 50 clients in the UK with £6bn of assets under administration on its platform and a further £40bn of assets administered via its software system Tercero.

Nucleus says the acquisition will give it the ability to extend platform solutions to advisory firms of all sizes.

As well as an existing retail retirement platform and specialist SIPP and SSAS products, Nucleus will benefit from Third Financial’s proprietary technology, Nucleus says. It expects to offer its ‘adviser-as-a-platform’ proposition to larger adviser businesses who want to offer their own platform.

Richard Rowney, CEO of Nucleus, said: “We're delighted to announce the acquisition of Third Financial. By combining our scale, expertise and relationships, with their innovative technology, we’ll be able to offer a broader proposition to serve the needs of wealth managers and advisory businesses across the sector.

“We’ve long admired the team that Ian has built at Third Financial and what they’ve achieved. Their focus on innovation and client centricity has clearly differentiated their business, establishing them as one of the leading investment platform providers and they will be a great addition to our group.”

Ian Partington, Third Financial group CEO, said: “A crucial factor in the decision to join Nucleus is that we feel very culturally aligned. With our combined expertise and resource we can deliver even more to existing and future clients both in terms of products and service."

Financial Planning Today Snap Analysis: This deal marks a logical expansion of Nucleus’ capabilities and gives it a better foot-hold in the new, but rapidly developing, in-house platform market many advisers are looking to enter. Third Financial’s experience will give Nucleus plenty of extra muscle in this developing sector. In-house adviser platforms are growing as more adviser firms look to reap the benefits of running their own in-house platform with a trusted third partner. Larger autonomous platforms will be keeping a close eye on developments in this sector and it’s likely many will join the club before too long to maintain market share.