MERGERS AND ACQUISITIONS
Nexus IFA and DFM Sold to Vintage Wealth Management
Vintage Wealth Management is a leading financial advisory firm that specializes in providing personalized wealth management services to individuals, families, and businesses. With a commitment to exceptional client service and a comprehensive approach to financial planning, Vintage Wealth Management helps clients navigate the complexities of wealth management and achieve their financial goals.
The company offers a range of services tailored to the unique needs and objectives of each client. These services include investment management, retirement planning, estate planning, tax planning, risk management, and more. Vintage Wealth Management takes a holistic approach to wealth management, considering various factors such as risk tolerance, time horizons, and individual circumstances to develop customized strategies.
Vintage Wealth Management decided to acquire Nexus Independent Financial Advisers (IFA) and its discretionary fund management (DFM) arm, Nexus Investment Managers, due to the strategic opportunities and benefits the acquisition offered. The decision to acquire Nexus IFA and DFM was driven by several factors. Firstly, Vintage Wealth Management saw the acquisition as an opportunity to expand its presence in the financial advisory market and strengthen its position as an independent wealth management firm.
Additionally, Vintage Wealth Management recognized the value of the client base and assets under management held by Nexus IFA and DFM. Acquiring these businesses allowed Vintage Wealth Management to increase its client portfolio and manage a larger pool of assets, which could contribute to revenue growth and business sustainability.
Furthermore, the acquisition aligned with Vintage Wealth Management's growth strategy. By integrating Nexus IFA and DFM into their existing operations, Vintage Wealth Management could leverage synergies and operational efficiencies, enhancing their overall service offerings and capabilities. This consolidation of resources and expertise could lead to improved client satisfaction and long-term business success.
There were four formal offers made for the businesses.
Vintage Wealth Management has paid £500,000 ($615,331, €567,914) to acquire Nexus Independent Financial Advisers and its DFM branch, Nexus Investment Managers, both of which are based in the United Kingdom. On January 26, the high court appointed Carl Faulds and Nicola Layland of Leonard Curtis as joint administrators to take control of the firms.
The Financial Conduct Authority (FCA) placed limitations on both businesses on January 31 that prohibit them from engaging in regulated activities and restrict their access to assets. The FCA took this measure after receiving complaints that the firm's director withdrew more than $2 million from client accounts without permission or in an improper manner.
The administrators have updated the status of the sale, which Hilco Valuation Services has been marketing. It was confirmed by Leonard Curtis' Layland that on March 9, 2023, a sale of the business's assets was finalized to Vintage Wealth Management Limited. "We previously advised that we had sought proposals for the business and that a number of offers were received.
Layland was pleased with the outcome, despite the difficulty of the procedure, and he stressed the significance of preserving customers' interests and securing the largest possible sum for the companies' creditors.
London-based advisory firm Vintage WM had already bought two IFA firms, Statehouse Private Wealth and Corfe Wealth Management, both in Surrey, for unknown sums.
The Methods of Making a Sale
Sixty people reached out to Hilco first, and 38 of them signed NDAs to gain access to a secure data room containing important information. There were seven interested parties, and after further conversations and information gathering (including calls with the management team), four formal bids were made.
The sale was contingent on receiving FCA permission, thus that agency was given information about all bids and communicated with prospective purchasers. It was necessary to prove to the Financial Conduct Authority (FCA) that the purchaser was equipped to handle the influx of new customers.
That is the next step in the administration process, according to Leonard Curtis' Faulds, "to identify further monies that may be recoverable for the benefit of creditors and to assist the FCA with any further inquiries into the events leading to the administration."
Administrators claimed they were brought in because the single director was absent and raising red flags. Nexus Independent Financial Advisers and Nexus Investment Managers were fined by the Financial Conduct Authority (FCA) on allegations that a lone director may have unlawfully withheld payments from clients.
The FCA said that the director entered the firms' bank accounts on or around January 14, 2023, and transferred £50,000 to their personal account. The behavior "appears to pertain to many clients and to have spanned at least the period from September 2021 to December 2022."
The FCA imposed these limits to safeguard the firms' assets and the interests of their customers in light of the persisting threat of additional dissipation. The regulatory body also found that both Nexus IFA and Nexus IM were lacking in key decision-makers and supervisory personnel.
Kerry Nelson is the only listed director at Companies House. Directorships were held for a single month by Peter Geike-Cobb, Anthony Peter Van Gool, and James Wheatley in 2022, from November to December.
The Nexus Group, which includes Nexus Insurance Brokers, Nexus Financial Services, and Nexus Financial Advisers, is situated in Dubai, although these companies have no connection to Nexus Independent Financial Advisers or Nexus Investment Managers.
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