Wealth firm Courtiers has made two acquisitions, with two more in the pipeline, as it looks to further grow its assets under management (AUM).
The company, which has approximately £650 million in AUM, has bought Kent-based De Brae Investment Management in addition to Henley-on-Thames firm, Paragon Independent Financial Solutions.
Discretionary fund manager De Brae’s purchase was completed at the end of last year and is expected to deliver around £25 million in funds under management, Courtiers chief executive officer Jamie Shepperd (pictured) told Wealth Manager.
He added that the transition of clients is ‘well under way’ and director David Webb has also moved across to help through the transition process over the next 24 months.
This week, the company also completed the purchase of advice firm Paragon, which will become an appointed representative of Courtiers for the next three years, after which time the clients will transfer to Courtiers.
Shepperd is estimating that around £36 million will migrate across, while the payment for the business is ‘based on a 3.6x multiple of their repeatable revenue when we exercise our call option in 36 months’.
Two advisers at the firm, Barry Stanley and Minesh Parmar will join Courtiers as part of the deal.
Shepperd also revealed that Courtiers is in discussions with two other companies, which have the potential to deliver a total of £140 million funds under management.
Both deals are expected to be completed in September.
In its last financial year, the 12 months to the end of March 2017, Courtiers’ profit was flat at £1.5 million on a turnover of £10.2 million, up 16% year-on-year.
The wealth firm previously bought Oxford adviser JRH Asset Management in 2016, which brought in £62 million in client assets.