Acquisitive wealth management group Fairstone has invested in Dudley-based Prosperity Wealth in a move it hopes will lead to more business in the West Midlands.
The North East-based firm has made the investment as part of its downstream buyout programme, which allows it to invest in a firm prior to a full acquisition. Fairstone says the deal will create a 'West Midlands Hub' from which is hopes to attract other independent financial advisory practices to join its ranks.
Prosperity Wealth is led by managing director Matt Bell and employs 63 advisers and 23 operational staff, who together support 5,000 clients with £1.5bn in assets under management. Lee Hartley, Fairstone CEO, said: "It is a pleasure to welcome the Prosperity team to the Fairstone Group. Over the last 13 years the team has developed a hugely successful business in a geography that strategically, Fairstone has been keen to target.
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"The team are admirably ambitious and in recent years have harnessed the power of their professional connections to achieve significant organic growth alongside a strong local brand. At Fairstone we are committed to a high-performance culture and investing in people is paramount to achieving this.
"Matt and the wider Prosperity management team have developed a recruitment and development programme that has and will continue to attract and nurture the best talent in the West Midlands. They are a seriously impressive team, and I am really looking forward to working with them to amplify the success to date."
Fairstone says the move is evidence it can support firms that are already operating at significant scale, as Prosperity is doing. As part of the downstream buyout programme, Fairstone will act as an investment partner and provide centralised resource, technology and capital.
Prosperity Wealth CEO Matt Bell said: "For a number of years we have looked for the right partner, in terms of values, culture and market credibility whilst maintaining full, whole of market independence. Collectively, we strive to give all clients a valued and trustworthy experience at every opportunity by putting them at the centre of everything that we do. We are all very excited to enter the next chapter of our journey with Fairstone."
Recently Fairstone revealed it would expand into the former Nike UK headquarters in Sunderland's Doxford Park. Work is underway to refit the offices where the firm said it hopes to employ about 120 more people.
