Advanta secures up to £40m to fund acquisition pipeline

Advanta Solutions has secured £10m – £40m worth of private equity backing from Beech Tree Private Equity. 

Advanta Solutions, which includes financial planning and mortgage and protection businesses, has around £500m in assets under advice, managed across a team of 60. 

The funding has been granted in order to fund Advanta’s growth and invigorate its acquisition strategy. 

Chief executive of Advanta, Craig Webster, commented: “We intend to accelerate organic growth by recruiting several additional advisers each year who share both our focus on customer service and our growth ambitions.

“On the acquisition side, we believe there are around 3,000 financial advisory firms out there with principal owners either already 60 years old or approaching that age.

“We understand that retiring owners are focussed on ensuring a legacy and that their businesses can continue to prosper with both staff and customers looked after appropriately going forward.

“We are fully committed to doing just that and will target acquisitions with AUM of more than £50m and EBITDA of more than £250,000.”

Beech Tree Private Equity, which deals with funding and supporting acquisitions, management buy-outs and growth in the financial services industry was actively seeking to invest in the wealth management sector’s “growing market”. 

Simon Hemley, Beech Tree’s director, said: “It is a growing market, but we wanted to find the right business that was growing at a faster rate than the market as well as providing the platform for an ambitious acquisition strategy.

“It was clear immediately that we shared the same vision as Craig Webster and his team – a two pronged growth strategy of sustainable organic growth with best in class customer service combined with acquisitions.”

Mr Hemley and his colleague Andy Marsh will sit on the Advanta board of non-executive directors. 

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