Flexpoint Ford has agreed to acquire UK-based AFH Financial Group, a financial planning-led wealth management firm. No financial terms were disclosed.
NEW YORK and LONDON, Jan. 27, 2021 – Flexpoint Ford, a private equity investment firm specializing in the financial services and healthcare industries, announced that it has entered into an agreement to acquire AFH Financial Group plc (“AFH”), a leading UK financial planning-led wealth management firm.
“We believe that the UK wealth management market is currently undergoing an important transition, as regulatory and demographic trends are driving increasing demand for high quality financial advice that can be met by IFA firms with a long-term and client-centric view. In addition, the market is highly fragmented, which provides an opportunity to service customers better and create value through consolidation,” said Steven Begleiter, Managing Director of Flexpoint Ford.
“We are pleased to announce our first platform investment in the UK,” added Daniel Edelman, Managing Director of Flexpoint Ford. “Since its founding more than 20 years ago, AFH’s management team has demonstrated long-term growth both organically and through acquisitions. Flexpoint shares the management team’s vision for growth and believes the next phase of AFH’s development would be better conducted in the private domain. We believe our partnership will strengthen the business and look forward to supporting management in the future.”
“Since our IPO in 2014, AFH has grown to become a leading brand in the financial planning-led wealth management market,” said Alan Hudson, Chief Executive Officer of AFH Financial Group plc. “The Executive Directors and I have always sought to deliver on our strategy of organic and M&A-led growth, but in recent years this has been curtailed by being an AIM-quoted company. We believe the offer reflects our strong track record of increasing shareholder value, Flexpoint’s endorsement of our strategy and confidence in the continued success of AFH, as well as further investment required in the business.”
Hudson continued, “Through its portfolio of leading financial services investments, Flexpoint has demonstrated its strong track record of partnering with entrepreneurial businesses, and the Executive Directors and I believe there is a great strategic and cultural fit for clients, staff and wider stakeholders. With the backing of Flexpoint’s expertise and access to capital, we believe that we will be able to accelerate the delivery of our strategy. The Executive Directors and I believe that the demand for professional financial planning-led investment services will continue to grow and that AFH partnered with Flexpoint will be able to service growing client needs and grow market share.”
The acquisition has been unanimously approved by the Independent Directors of AFH and is pending both regulatory and shareholder approval. AFH will continue to serve its clients, as usual, without interruption.
It is intended that the transaction will be implemented by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act.
The transaction is conditional on, amongst other things, approval of the Financial Conduct Authority of the change of control of AFH Financial Group plc.
Raymond James Financial International Limited is acting as exclusive financial advisor, and Kirkland & Ellis International LLP is acting as legal advisor to Flexpoint Ford.
For full details of the offer please see the Rule 2.7 announcement at: https://afhwm.co.uk/investor-relations/announcements/
About AFH Financial Group plc
AFH (AIM: AFHP) is a leading UK financial planning-led wealth management firm based in the Midlands with offices across the UK. Founded in 1990 by Alan Hudson (Chief Executive Officer), the AFH Group provides wealth management and financial advisory services to over 20,000 clients in the UK. These services are delivered by over 450 professional advisers and 400 support staff.
Since its IPO in 2014, AFH Group’s strategy has focused on increasing shareholder value through a combination of organic growth through greater productivity of advisers and by value accretive acquisitions financed on an earn-out model (having made over 50 acquisitions since IPO). In September 2019, following feedback from shareholders, the AFH Group announced a focus on organic growth.
About Flexpoint Ford, LLC
Flexpoint Ford is a private equity investment firm that has raised more than $4.3 billion in capital and specializes in privately negotiated investments in the financial services and healthcare industries. Since the firm’s formation in 2005, Flexpoint Ford has completed investments in more than 30 companies across a broad range of investment sizes, structures and asset classes. Flexpoint Ford is headquartered in Chicago with additional offices in New York. For more information about Flexpoint Ford, please visit www.flexpointford.com.