Fairstone makes first acquisition of 2021

Fairstone Financial Management has made its first acquisition of 2021 as the company continues with its downstream buy out (DBO) model. The acquisition of Glasgow-based financial advisor Chartermarque comes after Fairstone secured further backing for its acquisition drive from TA Associates in February.

Fairstone secured a gross fee income of £1 million in the acquisition, which also adds £200 million in funds under management. Chartermarque, which specialises in advice and management for retirement and investment portfolios, also brings in around 200 clients.

The DBO model involves Fairstone taking a minority stake in a business, integrating it over a period of around two years, before fully acquiring the company. This approach has driven a slew of acquisitions for Fairstone in recent years, with eight takeovers in 2019 and ten in 2020.

Fairstone initially targets firms with solid sales and robust management that are looking to grow. The integration period then allows it to assess the company’s organic growth and sales value before completing the acquisition.

Following the Chartermarque acquisition, Fairstone chief executive Lee Hartley said: "We are delighted to complete the final acquisition of Chartermarque which is a genuinely high-quality business with a proven leader in Scott Morton.”

"We have worked closely with the team at Chartermarque throughout the integration phase and they share our core values of putting clients at the heart of everything we do, making them an excellent fit for Fairstone.”

"Within Fairstone, we work hard to ensure our proposition gives firms the framework they need to significantly grow their businesses, without compromising on client service or independence. Finalising this deal with Chartermarque signifies a valued addition to our group."

Chartermarque principal Scott Morton added: “Continuing to meet our clients’ needs in a rapidly changing environment has been at the forefront of our decision to become part of Fairstone.”

“The desire to continue to provide independent advice was particularly important and Fairstone’s financial strength allows further investment in people and infrastructure – all for the ultimate benefit of our valued clients.”

“Fairstone provide the financial strength and stability that a smaller firm like ours will benefit from together with providing the technology that is vital in today’s marketplace.”


Read more about the wave of acquisitions in the advice sector.

Read about the growing popularity of alternative forms of dealmaking such as Fairstone's DBO model.

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