Charlie Parker, MD of Albermarle Street Partners, has said the amount of private equity money entering financial advice is “extraordinary”.
.He said the number of approaches advisers receive from consolidators was a distraction for them while running their businesses. "You want to focus on building something, but you've always got this thought of ‘what's next? Is there some sort of magic pot of money I can't access yet but need to get to?'"
However, the DFM managing director, as can be viewed in the video embedded below, said the bigger question of private equity and greater consolidation was whether it had actually brought better outcomes for clients. And as to whether more product providers will continue to snap up firms built up by private equity money, as recently seen in Aviva's Succession Wealth acquisition, he said it is a trend that will "definitely keep going".
He continued: "Often we see what happens in the UK follows the US and this was really what was taking place ten years ago - all the power shifting from the people who make funds to the people who have the underlying relationships with clients and therefore the people who make funds buying them all out.
"The amount of money coming in from private equity has been extraordinary."
Talking about the greatest risk of increasing consolidation and private equity in advice, Michele Golunska, CEO of Sesame Bankhall Group, said: "Making sure UK consumers have access to choice, that you don't end up with a few big players. We support variety and making sure there's whole of market opportunities in terms of the propositions that are available.
"At the moment we're not seeing a problem in that way but it's very early days with some of the PE [private equity] money coming in. It's really important the investors [behind advice firm takeovers] understand the regulatory burden and that's on them and particularly around making sure customers get good outcomes."
The Edit (the YouTube video embedded above) is Professional Adviser's short, pacey highlights show for its major events like PA360. Private equity was a discussion theme that ran through the conference and speakers were interviewed about their thoughts in the review show embedded above.
The show, filmed on the day in London and hosted by PA editor Tom Ellis, who also chaired the conference, analyses the key talking points of the day and features exclusive interviews with the top speakers and smartest industry experts.
For those who attended, it is a chance to re-live the experience.
And for those whodid not, it is an opportunity to get a flavour of what was missed, as well as a nudge to pop along next year.
The show, filmed on the day in London and hosted by PA editor Tom Ellis, who also chaired the conference, analyses the key talking points of the day and features exclusive interviews with the top speakers and smartest industry experts.
