Sanlam is to acquire Tavistock’s Cheltenham-based advice network Tavistock Financial for £1 million, adding almost 160 advisers alongside 25 support staff to its payrolls, and around £1.5 billion in assets.
The announcement followed hard on the heels of Sanlams’ hire of former Close head of private clients Penny Lovell to found a family office division within the group.
Sanlam chief executive Jonathan Polin (pictured) said: ‘This is another significant milestone in our mission to build a client-centric, advice-led and outcome-focussed business.
‘We are very pleased to welcome Tavistock Financial's network of high quality advisers to Sanlam.
‘Earlier this year I announced the launch of Sanlam Partners, a way for adviser firms to leverage the benefits of the wider Sanlam Group while retaining control of their business.
'The initial response from advisers has been hugely positive and today's acquisition allows us to accelerate this concept.'
Tavistock Financial was founded in 2015 following its £1.5 million acquisition of IFA Sutcliffe Solloway and the Standard Financial network, bringing in 236 IFAs to the business.
In results last week the company noted that it had reached an ‘inflection point’ of client assets under management, and said it was reorienting strategy toward global growth ambitions.
Tavistock chief executive Brian Raven said: ‘Our focus is on building closer relationships with our advisory partner firms, rather than on operating a traditional network business such as Tavistock Financial.
‘We are now working with over 100 registered individuals and 40 appointed representative firms, all of whose businesses we would be pleased to acquire. Therefore, the Tavistock Financial business no longer fits with our strategy.’
The company estimated that the network generated around £13.4 million in revenue in the last year with earnings of £109,000.