New York PE firm takes Nucleus stake

Nucleus, the UK adviser platform group, has been sold for the second time this year.

HPS Investment Partners, a US private equity firm based in New York, has acquired a majority stake in Nucleus from current shareholder Epiris.

This comes after talk of Epiris selling its stake for some time, with giants like Goldman Sachs rumoured to be interested in becoming a majority shareholder. Epiris’ company James Hay bought Nucleus less than a year ago. 

Richard Rowney, Nucleus chief executive, said: “My whole team and I have really enjoyed working with Epiris to deliver the vision set out for this business in 2019.

“We’re now delighted to welcome HPS as the new majority investor and look forward to working with both them and Epiris as we continue to progress our exciting vision. It has been obvious from an early stage that their ambition for the business and commitment to support me and my management team to grow the business meant we are all completely aligned.

“While today’s news will not result in any immediate practical change, it is certainly a vote of confidence, not just in our strategy, but also in our people – the 650 dedicated colleagues who make up our business, with a sole focus of supporting advisers, and helping them make retirement more rewarding for their clients.

“We’ll now continue our important work of ensuring the basics of platform provision are right; serving advisers properly, executing orders on behalf of their clients and ensuring the financial plans they’ve designed can be effectively delivered. At the same time, we’ll continue to share the benefits that come from economies of scale with our customers, investing in giving them better products, better service and better prices.”

The sale comes as US private equity firms are gaining a larger presence in the UK advice industry.

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