8th January 2025
Foster Denovo has announced its acquisition of Verum Wealth, a Glasgow-based firm with £87m in AUA, furthering its expansion across Scotland. Established in 2015 by Tony McPhee, Verum Wealth previously operated as a joint venture with an accountancy firm that primarily serves owner-managed businesses. This marks Foster Denovo's seventh acquisition in just over a year, demonstrating its commitment to growing its national footprint through strategic consolidations.
The Verum Wealth team, including McPhee, Angela Britton, Samantha McIntosh, and Alison Kerr, will join Foster Denovo’s Glasgow hub, which was established following the acquisition of Rosemount Asset Management last year. McPhee highlighted the importance of cultural fit in the acquisition process and expressed confidence in Foster Denovo’s alignment with Verum’s values and client care standards. He cited positive experiences shared by Jon Sweeney of Rosemount, which further reinforced the decision to integrate with Foster Denovo.
Foster Denovo’s acquisition strategy has received £100m in investment support from Texas-based private equity firm Crestline Investors. Since obtaining this funding in 2022, the firm has invested £54m in acquisitions and related initiatives, including buying Brian Mole Independent Financial Advisers in December 2024, adding £300m in AUA and expanding its presence in the Midlands. These deals have contributed to a revenue increase from £27m in 2022 to £29m in 2023, despite the firm reporting a £6m loss last year due to its aggressive growth strategy.
This acquisition illustrates the ongoing regional expansion and consolidation trend within the financial advice sector. By establishing hubs in key regions such as Glasgow, firms like Foster Denovo are positioning themselves to offer enhanced localised services while achieving economies of scale. The deal also highlights the growing role of private equity in driving growth, enabling firms to secure funding for acquisitions and expand their client bases and adviser networks.
For independent financial advisers, consolidation presents both opportunities and challenges. Firms like Foster Denovo prioritise cultural alignment and client continuity, making them attractive choices for merging into larger networks. However, the emphasis on rapid growth also underscores the importance of strategic planning for firms contemplating a sale or merger.
At Chapters Capital, we specialise in financial planning and wealth management M&A, helping firms navigate transitions and explore growth opportunities. Whether you are considering a sale, merger, or expansion, our tailored approach ensures you receive expert guidance at every step. Contact one of our professional associates today for a confidential, no-obligation consultation.