Private equity group 3i has sold its majority stake in Bestinvest to Permira for an undisclosed sum.
The stake sold by 3i and others funds generated total proceeds of £45 millon. 3i will receive proceeds of around £25 million, which it says is a £19 million uplift to the wealth manager's June 2013 valuation.
The private equity group bought a stake in Bestinvest in August 2007 and claims credit for bringing in chief executive Peter Hall and chairman Mike Covell as part of a wider management restructure.
It also helped develop a period of investment in the business, led by Hall (pictured), which included relaunching its online service and creating a national adviser network through the initial acquisition of Haines Watts Financial Services in 2010.
Ian Lobley, a partner at 3i, said: 'During 3i’s investment, Bestinvest has been transformed as a business and continued to grow, despite some challenging times in the financial markets.
'Today Bestinvest has around £5 billion of funds under management and a strong reputation in the industry. As Bestinvest enters a new phase of development we thought now was the time for us to realise the value created with the management team and introduce a new partner to support the company’s future growth.'
Hall added: '3i has been a strong and committed partner for Bestinvest and we are hugely grateful for their support. Together we have been able to successfully develop the business to a stage where we are widely recognised as a major beneficiary from the changing regulatory landscape and are exceptionally well-positioned for future growth.'