A Taunton-based financial advice firm 1st Financial Group has been acquired by national wealth management company Fairstone, in a deal that will see the Somerset business become part of one of the UK’s largest financial advisory groups.
The acquisition brings £125 million in client assets under Fairstone’s management and marks the completion of a partnership between the two businesses that began in January 2022.
1st Financial Group provides independent financial advice, investment management, estate planning and mortgage services to more than 4,000 clients.
The business, led by principal Phil Higginson, has a team including three independent financial advisers and a mortgage and equity release adviser.
Following the acquisition, the company will operate under the Fairstone Taunton name.
Four-year partnership leads to acquisition
The deal follows 1st Financial Group’s participation in Fairstone’s Downstream Buy Out (DBO) programme, which allows independent financial advice businesses to access investment, technology and operational support ahead of a potential full acquisition.
The arrangement is designed to help smaller advisory firms expand while providing business owners with a structured route towards selling their companies.
For 1st Financial Group, the partnership has provided access to Fairstone’s national infrastructure and resources while enabling the business to continue serving its established Somerset client base.
“We’re very proud to become part of Fairstone. Since signing the DBO agreement, we’ve benefited hugely from the additional support and resources of what is one of the UK’s largest and most trusted wealth management groups.”
— Phil Higginson, Principal, 1st Financial Group
Somerset identified as a growth market
The acquisition forms part of Fairstone’s wider expansion strategy, with the group identifying Somerset and the West Country as attractive markets for financial advice and wealth management services.
“The addition of 1st Financial enhances our ability to serve clients across Somerset and the wider West Country while providing additional access to a growing client market.”
— Rob McDonnell, Managing Director (South), Fairstone
McDonnell highlighted population growth, the region’s proportion of retirees and business owners, and increasing demand for financial planning as factors supporting the company’s investment in the area.
The deal will also give 1st Financial Group’s clients access to Fairstone’s broader investment, mortgage and specialist financial services capabilities.
National group continues expansion
Headquartered in Sunderland, Fairstone operates from more than 50 locations across the UK and employs over 1,450 people.
The group serves more than 60,000 wealth management clients and oversees assets exceeding £23 billion.
Its acquisition of 1st Financial Group is part of a broader strategy to expand its national presence through partnerships with established independent financial advisory businesses.
The financial terms of the acquisition have not been disclosed.
The deal highlights continued interest from national financial services groups in acquiring established regional businesses, with Somerset’s population of business owners and retirees helping to underpin demand for specialist financial advice.
Image: (L-R) Phil Higginson, 1st Financial Group with Rob McDonnell, Fairstone. ©Fairstone.