The Newcastle based wealth platform, True Potential, has appointed bankers from Perella Weinberg Partners to aid them through buyers’ offers over the upcoming months in a deal that could be valued at close to £2bn, as reported to Sky News.
The vertically integrated fintech company made a profit of £24m last year with a turnover of £99m, which is up 61% on the previous year, and currently employs over 250 staff. Having been set up in 2007, True Potential’s minority stake is held by a US based private equity firm, FTV Capital, as well as 739 individual partners.
In April this year, True Potential announced that the contract it held with SEI to provide had been dropped, in favour of the development of its own in-house technology. David Harrison, Managing Partner of True Potential, has said that the decision will open up “powerful opportunities for the platform moving forward”. Mr Harrison previously founded Positive Solutions in 1997 and grew the business to the largest in the country, representing 1,900 IFAs.
In addition to Mr Harrison’s statement, a True Potential spokesman has said, “2017 was an exceptionally strong year for True Potential and that performance has accelerated throughout 2018, in an industry that is also growing fast.
“It is inevitable that there would be interest in the company.
“True Potential has appointed Perella Weinberg Partners to consider and advise on the domestic and international interest that has been shown in us.”
True Potential is one of a number of platform companies making similar sales announcements this year, including FNZ Group, Transact, Nucleus and AJ Bell, reflecting consumer behaviour which is increasingly shifting toward digital platforms.
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Gunner & Co. work with IFAs looking to sell their business, and can give you more information if you wish – contact louise.jeffreys@gunnerandco.com
