Fairstone Announce Acquisition of UskVale

Fairstone, one of the UK’s largest Chartered financial planning firms, today announces the acquisition of South Wales-based UskVale Financial Planning, marking another significant step forward in the firm’s growth plan for 2020.

This acquisition by the full-service wealth management house, further highlights the strength of Fairstone’s unique proprietary Downstream Buy Out (DBO) acquisition model which integrates ambitious IFA firms into the group, typically over a two-year period, prior to final acquisition.

Significantly, the vast majority of companies that have successfully reached ultimate acquisition stage demonstrate continued organic growth and a higher valuation than expected on purchase. Last month, Fairstone published their full earn-out data of all firms acquired to date which showed an average of 111% across its entire portfolio of acquisitions, with one in six acquisitions receiving more than 135% and crucially none receiving less than 100% of their cash consideration.

Based in Pontypool, South East Wales, UskVale, is a whole-of-market advice firm specialising in the management of investment and retirement portfolios.

The acquisition brings over 700 active clients into the group together with UskVale’s three advisers and six support staff. The acquisition also secures gross fee income of £1.2m for Fairstone together with funds under management of £120 million.

Commenting on the deal, Lee Hartley, CEO of Fairstone, said: “We are delighted to complete the final acquisition of UskVale, having worked closely with them throughout the integration phase.

“The team’s client-centric ethos and first-class approach to their work makes them an excellent fit for Fairstone.

“We work hard to ensure our proposition gives firms the framework they need to significantly grow their businesses, without compromising on client service or independence, and UskVale has shared our appetite to grow and develop.

“Finalising this deal with UskVale marks a very valued addition to our group and continues our scheduled growth plan for 2020.”

Company principal at UskVale, Paul Pelopida, said: “We joined Fairstone in 2017 as I was impressed with the people as well as the approach and attitude of the company, particularly in relation to remaining truly independent and allowing the full whole of market range of solutions to be considered for each and every client.

“Fairstone has delivered in every aspect and we are able to continue to deliver superior and fully holistic financial planning in a fully independent way to all our clients. Flexibility and choice combined with extensive research and support, ensures our clients continue to receive the first-class advice and service they are accustomed to.”

Further consolidating Fairstone’s measured growth plan, nine firms have joined its unique DBO programme so far this year, bringing more than £1.3bn in funds under management to the wider business. Fairstone are also on track to announce additional deals before the turn of the year.

Lee Hartley added: “Our unique DBO model is continuing to yield impressive results and is attracting a series of extremely high-quality firms into our fold. I am proud to say that Fairstone remains in a superb position to deliver continued growth and excellent client satisfaction as we move into 2021 and beyond.”

Headquartered in Newcastle, Fairstone is the number one ranked wealth management firm on Trustpilot* with over 69,000 clients and operates nationally across 42 locations.