Wealth boutique European Wealth expects the £1 billion asset threshold to be in sight over the next few months, hot on the heels of the firm’s acquisition drive.
Co-founder John Morton told Wealth Manager he expects to see inflows worth over £200 million by the end of the year. When added to the £630 million in assets the firm runs, this will bring it close to £900 million by year-end.
European Wealth was founded in 2010 and is led by chief executive and former Wealth Manager cover star Rod Gentry (pictured). It has 5,000 clients on its roster and Morton expects approximately 75% of the new assets to come from existing clients allocating more money to the firm.
He expects the remainder will come from the string of acquisitions in Cheltenham, Bromley and Worcester that it completed in 2012, alongside assets following new recruits.
From its £630 million of assets, European Wealth earned revenues of £3 million over the first half of the year, with an operating profit of £240,000. This compares with a turnover of £1.15 million for the first half of last year, and a loss of £100,000.
As a result of the expected growth in assets, European Wealth predicted that its 2014 operating profit would ‘more than’ double from this year’s performance.
Paul Everitt, director of the EW Group, which owns almost half of European Wealth, added that increased regulatory costs and the growing trend of large firms ditching smaller clients had created ‘both organic growth and consolidation opportunities’.