Corporate Information - Financial due diligence pack 2021 - Fairstone Group
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Corporate Information Financial due diligence pack 2021
v1.1 - 07.21
Contents
Welcome to the Fairstone Group 3
Fairstone’s leadership team 4
Fairstone’s executive team 6
Fairstone’s group structure 9
The history of Fairstone 10
Investors 11
Financials 12
Our standards 13
Our professional partners 14
Fairstone Corporate Information | 2
Welcome to the
Fairstone Group
Launched in 2008, Fairstone is a full-service
wealth management house redefining the UK
financial planning market.
Fairstone operates across both retail and corporate sectors and
our rate of growth is consistently beyond 20% for each financial
year and our annualised income exceeds £85 million.
Incorporating one of the UK’s largest Chartered financial
planning firms, Fairstone Group operate across 42 locations
nationwide and are recognised as one of the fastest growing
financial services organisations in the country.
Our 70,000 clients are at the heart of everything we do from
providing a wide range of personalised wealth management
solutions to ensuring an active and on-going review process.
That is why they have rated us the number 1 wealth
management firm on Trust Pilot.
Our nationwide team of over 380 professional advisers
specialise in all areas of financial planning and currently oversee
£11bn in investments and pension assets, and our managed
investment portfolios have been Defaqto 5-star rated for six
consecutive years.
We offer clients a flexible charging structure with no lower
wealth limits, no minimum fees and no exit penalties.
Our clients fee structure is consistently 60% lower than
the market leader thanks to our intelligent wealth
management approach.
We leverage cloud-based technology to efficiently support
double digit growth. We combine market knowledge specialist
expertise and the very latest technology to produce the highest
quality outcomes for our clients in a cost-effective manner.
Supporting sector leaders in growing their businesses, our
near-term objectives across the group are to deliver annual
revenues in excess of £100 million, EBITDA margin of above
25% and to oversee client funds of £15 billion.
Fairstone Corporate Information | 3
Fairstone’s leadership team
Our management have a wealth of knowledge and experience that is used to support
our advisers, ensuring the best possible results for our clients and their families.
Lee Hartley | Chief Executive Officer
Lee founded Fairstone in 2008, growing the business from start-up to market-leader. Lee has been
integral to Fairstone’s growth, leading the business through a series of investment rounds and
overseeing the development of the business strategy and national acquisition programme.
Prior to Fairstone, Lee launched an e-commerce and software development business that served
clients such as Zurich, AXA, Abbey, London & European Insurance as well as a host of smaller banks
and building societies. He is a graduate of Northumbria University.
David Hickey | Chairman
David is an experienced professional having been involved in many roles for large and small
organisations over 35 years.
Having qualified as a Chartered accountant with KPMG, his initial 20 year career was in investment
banking with HSBC and subsequently Investec. In both cases his principal focus was Corporate
Advisory, leading client organisations, both in the UK and overseas, in mergers and acquisitions, as
well as fund raisings whether debt, other fixed rate funding, hybrid, or equity based, public
and private.
Iain Jamieson | Chief Financial Officer
Iain has over 20 years’ experience working worldwide within growth-focused organisations.
Iain is a qualified Chartered accountant and has been the CFO of leading private equity backed
companies including Volutions Holdings and Clinical Solutions. In his most recent role, Iain was the
COO at Stackhouse Poland, a buy-and-build focused general insurance broker, before overseeing its
ultimate sale to leading US insurer AJ Gallagher.
Fairstone Corporate Information | 4
Tom Taylor | Chief Risk Officer
Tom is an experienced Chief Risk Officer and joined the business to drive the risk and regulatory
strategy within the Fairstone Group.
Tom has spent the last 25 years in financial services across the banking and insurance sectors
holding a range of approved persons responsibilities, in companies such as Marsh McLennan, Lloyds
Banking Group, Jelf, and Ageas.
Scott Hopkinson | Chief Commercial Officer
Scott is a fully qualified Chartered accountant with over 10 years of board level experience, having
trained with Deloitte in the early stage of his career.
Scott has previously held senior finance roles for a range of high-profile organisations such as
Bannatyne Group, Eaga Plc and Hays Travel.
He is responsible for deal origination and delivering successful acquisitions under the DBO
programme as well as managing the commercial relationships between Fairstone and firms
under option.
Adam Smith | Chief Operating Officer
Adam is a senior financial services professional and brings with him almost 20 years of experience
including commercial director positions at Old Mutual, Cofunds and Legal & General.
As COO he principally oversees the Group’s investment management business as well as the
National estate of acquired entities. He has overall accountability for managing the firm’s client and
adviser propositions as well as the relationships with external product providers.
Fairstone Corporate Information | 5
Fairstone’s executive team
Mike Slater | Managing Director (National)
Mike has over 20 years’ experience within the financial advice and investment management sectors
and has held senior executive roles at Zurich, Openwork and Octopus.
As Managing Director of Fairstone’s National business, Mike is responsible for managing and driving
the growth of Fairstone’s acquired portfolio of firms.
Mike operates across the UK and is primarily based out of Fairstone’s London office.
Anna Pollins | Managing Director (Partnership)
Anna has over 15 years’ experience in financial services. After spending nine years at Raymond
James Investment Services in relationship management and product development roles, Anna went
on to work at Octopus Investments for six years in business development and distribution.
Anna joined Fairstone in December 2019. As Managing Director of the Partnership she is responsible
for managing the portfolio of firms that are undergoing integration ahead of being acquired. Anna
works closely with Fairstone’s partner firms to drive growth, adoption of operational standards and
cultural alignment.
Dennis Reed | Development Director
Dennis entered retail financial services in 1988 with FPS Management and the French re-insurer,
Groupe des Assurances Nationale (GAN) where he progressed from financial adviser status through
to regional director within three years.
Dennis was fundamental to delivering the successful AIM listing of Inter-Alliance which went on to
deliver a market capitalisation of £225M at its peak. During his time with the business Dennis was
involved in successfully integrating the sales forces from both Prudential and the US owned Lincoln
Group as part of the businesses merger and acquisition plan.
Ursula Sweis | Group Regulatory Director
Ursula has worked in Financial Services for almost 20 years specialising in compliance and risk. She
was awarded the Fellowship position of The Personal Finance Society and has been a Chartered
Financial Planner since 2016.
She has held the Diploma in Compliance since 2010 and also became a General Data Protection
Practitioner in 2017.
Fairstone Corporate Information | 6
Alick Campbell | National Projects Director
Alick has held directorships in Coats Viyella Plc and Dawson Plc during a 15 year career in
international manufacturing where he managed their operations across South East Asia
and the Pacific.
With an MBA from London Business School, together with extensive managerial experience in Asia,
the UK and Europe, Alick has built successful businesses across the highly regulated medical and
cosmetic fields, as well as others in the retail sector. In his career to date he has touched all aspects
of large corporate organisations, from turnaround and rescue through to international expansion.
Karina Parsons | Group Compliance Director
Karina has a wealth of experience having worked for over 15 years in senior leadership roles within
financial services. Working at firms such as Rathbones, Barclays Wealth, Prudential and Tenet. Karina
is a proven specialist in delivering regulatory development programmes with a people focused,
pragmatic approach.
Karina has joined the Executive Committee and has responsibility for the firm’s
Compliance Oversight.
Fairstone Corporate Information | 7Michael Hall | IT Director
Michael has over 20 years experience within the insurance, financial services and IT sectors,
encompassing roles within Sturge Holdings PLC, Royal Sun Alliance and Sage (UK) Ltd.
He joined Fairstone in September 2007 from Leeds Building Society, where he was responsible
for retail sales for their Newcastle City Centre branches. Michael has considerable experience of
managing diverse teams and has demonstrated throughout his career he is capable of delivering
measurable service improvements.
Simon Pile | Finance Director
Simon joined Fairstone in 2016 with responsibility for the core finance team. Simon is a Chartered
accountant with significant experience in the financial services sector having previously worked at
NVM Private Equity, managing the financial reporting for their investment portfolio as well as the
venture capital trusts. Earlier in his career Simon trained and qualified at Ernst and Young.
He is responsible for delivering all aspects of Fairstone’s core finance function, including statutory
reporting, management information and manages relationships with professional advisers and
external stakeholders
Steve Easter | Group Divisional Director
Steve started his career in retail financial services in 1989 with Swiss Pioneer Life.
He went on to build a profitable financial services offering within the largest estate agents in the
North East of England. Steve joined Fairstone in 2008 and following a successful start to life within
the company, Steve joined the senior management team where he has developed a proven track
record in driving sales growth and building long term relationships.
Mark Hewson | Group Divisional Director
Developed from an accountancy background, Mark has 20 years experience within the financial
services sector working for some well-known advisory firms.
More recently Mark worked within the senior management team of London based IFA firm Equus
Financial Management, which was acquired by Fairstone.
Fairstone Corporate Information | 8Fairstone’s UK group structure
Fairstone Capital Investment Ltd (FCIL)
Company No. 09928851 - Registered 23/12/2015
100% Subsidiary FCIL
Fairstone Executive Management Ltd (FEML)
Company No. 09937345 - Registered 06/01/2016
100% Subsidiary FEML
Fairstone Group Ltd (FGL)
Company No. 06599555 - Registered 21/05/2008
100% Subsidiary FGL
Fairstone Holdings Ltd (FHL)
Company No. 06599571 - Registered 21/05/2008
100% Subsidiary FHL
Fairstone Financial Fairstone Wealth Fairstone Private Fairstone Mortgage
Management Ltd* Management Ltd* Wealth Ltd* Solutions Ltd*
Company No. Company No. Company No. Company No.
06599571 03593750 5869447 06617881
Registered Registered Registered Registered
26/09/2005 07/07/1998 07/07/2006 12/06/2008
FRN. FRN. FRN. FRN.
475973 188596 457558 655072
Fairstone Corporate Clearworks Ltd
Solutions Ltd Company No.
Company No. *FCA authorised and registered 06617912
06617851
Registered
Registered 12/06/2008
12/06/2008
Fairstone Corporate Information | 9The history of Fairstone
Established in 2008, we offer our clients independent whole of market advice with
unrestricted choice while delivering intelligent solutions with no lower wealth limits or
exit penalties.
Headquartered in Newcastle, Fairstone has grown to have more than 42 locations nationwide including a management
hub in London, combining market knowledge, specialist expertise and the latest technology to produce the highest
quality outcomes for our clients.
Long term planning has always been a critical part of the Fairstone culture. It is at the core of all our relationships with
the business community, clients, advisers and staff. Long term is our mantra.
2020
Exceeded £10bn of client
assets on behalf of 30k
wealth clients 2019
Total of 600 colleagues
and exceeded £8.6bn
2018 of client assets
Reached milestone of
50,000 clients (wealth +
transactional)
2017
250 advisers contracted
and total recurring
2016 revenues reached 60%
£45m revenue-run
rate and 25 buy out
deals secured 2015
Hit £5bn of client
funds and 150
2014 advisers contracted
Exceeded £20m
revenue run-rate
with 50% recurring
2013
Secured second stage
investment, widened
2012 business model
Established new
Downstream Buy-Out
model and rebranded
2011
Completed three
outright acquisitions
2010
Organic growth
and national
footprint established 2009
Proof of concept
and secured first
round funding
Fairstone Corporate Information | 10Investors
£185m Total funds utilised/
deployed to date £129m Total funds returned
to shareholders
£24m Excess over
regulatory capital 106% Cash conversion rate
Key Investors:
£25m Unlimited acquisition
in 1st investment round
Undisclosed
£30m £15m facility via a third
generation €6bn fund
in 2nd investment round
£200m
Total funds committed to date by each
investor group/ bank are in excess of
£200m in aggregate
Fairstone Corporate Information | 11Financials
FY18 FY19 FY20 FY21 (Exp)
Revenues £57.7m £64.4m £69.7m £81.0m
Gross Margin £14.8m £18.8m £22.0m £31.4m
Opex £12.3m £13.0m £16.6m £20.0m
EBITDA £2.5m £5.8m £5.4m £11.0m
Addn. Secured EBITDA £9.0m £10.6m £13.5m £14.0m
Net assets £26.4m £24.2m £20.9m £31.1m
Key Figures
380 275 70,000
Regulated advisers Highly qualified staff Clients nationwide
£12bn 76% 92%
Funds under management Recurring fee income Repeating revenue
Number of acquisitions scheduled
12
12
10 10 10
10
8
6 5 5
4
2
0
2017 2018 2019 2020 2021 2022
Fairstone Corporate Information | 12Our standards
Incorporating one of the largest UK Financial planning firms,
Fairstone has achieved Corporate Chartered status* by the
Chartered Insurance Institute (CII) since 2015, which reinforces
Fairstone’s commitment to position itself at the forefront of the
financial advice sector.
*Fairstone Wealth Management Ltd holds Corporate
Chartered status.
Fairstone has chosen the world’s most powerful review
platform. Trustpilot, who’s mission is to bring people and
companies together to create ever-improving experiences
for everyone.
Trustpilot believe that people want to shape and improve their
world. They offer a free and open to all review platform, built
on collaboration.
Because if everyone helps each other to improve experiences,
then we’re all working to make the future a brighter place.
Fairstone’s independently validated client satisfaction
rating is 98%.
Defaqto offers a service that compares financial products and
gives them a qualitative star rating based on the features and
benefits they offer.
Fairstone have retained a Defaqto top rating of 5 stars for
our core managed portfolios for six consecutive years.
Defaqto experts have researched, collected and assessed nearly
41,000 financial products, and are constantly updating their
findings so customers have access to the most recent results.
Fairstone Corporate Information | 13Our professional partners
Lawyers
CMS lawyers work across sectors and Muckle LLP, a highly successful DWF is a global legal business, supplying
borders in more than 40 countries Commercial Law Firm based in Newcastle services not only to the global legal
worldwide to deliver advice to you upon Tyne. From our home here in the market but also providing complementary
wherever you operate. We see ourselves wonderful North East of England we have connected services to our clients. Our
as more than just legal advisers. We are built a national reputation. Not only for purpose is to transform legal services
your business partners. Our focus is on providing the best advice and service we through our people for our clients using
helping you mitigate risk and benefit from possibly can, but also for doing it with our three principal strategic objectives:
innovation, enabling your business or a personality, enthusiasm and attitude understanding our clients, engaging our
organisation to thrive. that’s very much our own. people and doing things differently.
Anna Burchner Phil Clare Robbie Constance
Fairstone Corporate Information | 14Auditing and due diligence providers
Deloitte advises corporate buyers and At PwC, our purpose is to build trust in Working with our clients also means we
private equity investors throughout the society and solve important problems. It see the challenges of doing business in
entire M&A deal lifecycle. Our end-to- is this focus which informs the services a complex and interconnected world
end merger, acquisition and divestiture we provide and the decisions we make. first hand. This means we’re in an ideal
advisory services are customized to meet Demonstrating genuine leadership is position to help turn these new realities
the unique needs of each of our clients. more important to us than size or short into opportunities, and to do so in a way
term revenue growth. To achieve our which makes a direct contribution to
aim to be recognised as the ‘the leading building a stronger society for everyone
professional services firm’ we must at the same time.
be innovative, responsible and attract
outstanding people.
Paul Cowley Kevin Barnard Chris Petts
Bankers
For Lloyds, Commercial Banking has a client-led, low risk, capital efficient strategy, and is
committed to supporting UK-based clients.
Through its segmented client coverage model, it provides clients with a range of products and
services such as lending, transaction banking, working capital management, risk management and
debt capital markets services.
Fairstone Corporate Information | 15Head Office: London Office: 1 The Bulrushes 4th Floor Woodstock Way 25 Copthall Avenue, Boldon Business Park London Tyne and Wear EC2R 7BP NE35 9PF 0845 6050 680 0207 665 8560 vip@fairstone.co.uk www.fairstone.co.uk © Copyright 2021 Fairstone Group. All rights reserved. Fairstone Group Limited. Registered in England and Wales no: 06599555.
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