Collins Stewart plans bid for Andersen Charnley

Citywire understands acquisitive wealth firm Collins Stewart is on the verge of completing a bid for advisory firm Andersen Charnley.

City headhunters have been trying to place Andersen Charnley investment professionals – who fear for their futures following the acquisition – with rival investment firms.

Despite a number of acquisitions in recent years, Collins Stewart still has plenty of purchasing power and was sitting on a cash pile of £69 million at the end of April. The deal is tipped to go through this month, although sources suggest if too many key staff decide to quit Andersen Charnley, the deal between the two parties could fall through.

Andersen Charnley prides itself on a holistic approach, avoiding the need for clients to have three or four relationships with different financial professionals. The group offers a range of bespoke services that provide clients with a personal asset manager and a dedicated para-planner. It also runs model portfolios covering three risk profiles with a diversified spread of assets ranging from commercial property, bonds, hedge funds and private equity.

The firm was named south east regional adviser of the year in 2008 and 2009 by our sister website New Model Adviser.

Collins Stewart is seen as a predatory wealth manager and has said it wants to expand through acquisition and build a one-stop shop, which offers both advice and a discretionary service. In March it marked its return to profit with the acquisition of offshore discretionary wealth management group Corazon Capital in a deal which could be worth up to £7 million.

This gave it access to the firm’s respected hedged fund operation, fronted by former Citywire Wealth Manager cover star Paul Meader.

At the time Collins Stewart chairman Terry Smith indicated the group remained on the buy hunt.

He said: ‘We continue to view the external environment with caution… Nevertheless, we have a strong balance sheet and the investment we have made in our businesses has positioned them to respond to these challenges and exploit the opportunities that they present.’

Collins Stewart refused to comment.