KW Wealth, formerly known as European Wealth, has expanded its national footprint by acquiring East Yorkshire-based IFA Marchant McKechnie for £4m.
The deal, subject to regulatory approval, is expected to bring KW Wealth £1.4m of additional revenue plus £200m of assets under advice.
This is the first major acquisition the group has completed since shedding its European Wealth brand.
Fragmented market
KW Wealth chief executive Marianne Ismail (pictured) said the deal was the first step to the firm becoming a leader in the UK wealth management market.
The group announced in June it would be rebranding and undergoing a major overhaul amid widening losses to capitalise on what it described as an “excessively fragmented” marketplace with few recognisable brands.
“We believe that there is a substantial market opportunity to build a national brand for quality, independent wealth planning advice and investment management,” said Ismail in a statement on Monday.
In addition to the UK market, KW Wealth is also actively looking to acquire US firms. It had been poised to takeover US broker Newbridge Securities but the deal fell through earlier this year.
Independent advice even more crucial
Marchant McKechnie assists clients with personal and company pensions, investments, and tax planning.
It will continue to operate from its office in Beverley, East Yorkshire, becoming KW Wealth’s seventh regional office in the UK.
The combined group will have more than £2bn of AUA, 20 financial advisers and more than 4,000 active clients.
David Inglesfield, head of wealth at KW Wealth, said being able to offer independent financial advice has become even more crucial for wealth managers.
“The provision of good quality independent financial advice is more important than ever,” he said. “We often see clients with complex requirements so it’s important that, as part of our growth, we partner with businesses that allow us to continue providing best in class advice and client care throughout the UK.”
