28th October 2024
In a significant development in the UK financial advice sector, Bain Capital has acquired a minority stake in Openwork, investing a total of £120m in debt and equity. This funding package includes £40m in equity and an additional £80m in debt, which may convert to further equity. This investment emphasises Bain's commitment to Openwork’s growth trajectory.
Openwork’s adviser partners, who own 90% of the network, have approved the investment overwhelmingly. This funding is expected to result in substantial payouts for adviser shareholders. However, large-scale payouts often increase adviser retirements, which could alter the firm's dynamics.
Boston-based Bain Capital, which manages over £154bn in assets, has a strong track record of investing in financial advice networks globally. This new venture in the UK is part of its broader strategy to support growth in financial services, following significant investments in Carson Group and Corient in the US market.
Openwork’s executive chair, Philip Howell, described the partnership with Bain as “transformative,” highlighting that it will help fund key initiatives, such as technology investments and network expansion across the wealth, mortgage, and protection advice sectors. Bain’s capital and expertise are expected to enable Openwork to enhance its services and strengthen its market position amid a changing landscape of private equity activity in UK financial advice.
This deal reflects a shifting market for financial advisory firms, where private equity investment powers growth, technology enhancement, and strategic expansion.
At Chapters Capital, we specialise in guiding wealth management firms through strategic investments and smooth transitions, ensuring sustainable growth and effective succession planning. If you are considering a sale or exploring expansion opportunities, contact our experienced associates today for a confidential, no-obligation consultation.