6th February 2025
Fairstone has expanded its acquisition efforts by adding Edinburgh-based 336 Financial Management Limited through its downstream buy-out (DBO) programme. This marks the 29th partnership of its kind in the past two years. Fairstone's broader strategy is to gradually integrate firms while allowing them to maintain operational independence before a full acquisition.
Through the DBO model, Fairstone has increased its assets under management by £4.1bn and added 177 advisers to its network, bringing its total assets under management to £18bn. This approach provides firms with capital investment, centralised resources, and access to Fairstone's investment management services while enabling them to operate autonomously until fully integrated.
Lee Hartley, the CEO of Fairstone, highlighted that 336 Financial Management’s strong reputation and client-focused approach align well with Fairstone’s model. He stated, “The team will play a pivotal role in building our presence in Edinburgh, which is the heart of Scotland’s financial services industry and a key location for our broader plan to drive continued growth throughout Scotland.”
This latest acquisition follows Fairstone’s purchase of Aberdeen-based Forbes Lawson Wealth Management in October 2024 and follows organisational changes made last year to support its growth. The firm aims to reach £40bn in assets under management by 2030.
This deal underscores the growing trend of firms opting for flexible acquisition structures instead of traditional consolidation models. The DBO approach, as demonstrated by Fairstone's recent activities, allows for gradual integration and ensures a smoother transition for clients and advisers. As consolidation in the wealth management sector progresses, variations in acquisition structures will likely influence the landscape, offering firms multiple pathways to scale while addressing client continuity and regulatory considerations.
At Chapters Capital, we specialise in financial planning and wealth management M&A. Whether you are considering a sale, merger, or expansion, our tailored approach ensures you receive trusted support at every step. Contact one of our professional associates today for a confidential, no-obligation consultation.