NEW YORK and LONDON, Jan. 27,
2021 /PRNewswire/ -- Flexpoint Ford, a private equity
investment firm specializing in the financial services and
healthcare industries, announced that it has entered into an
agreement to acquire AFH Financial Group plc ("AFH"), a leading UK
financial planning-led wealth management firm.
"We believe that the UK wealth management market is currently
undergoing an important transition, as regulatory and demographic
trends are driving increasing demand for high quality financial
advice that can be met by IFA firms with a long-term and
client-centric view. In addition, the market is highly fragmented,
which provides an opportunity to service customers better and
create value through consolidation," said Steven Begleiter, Managing Director of Flexpoint
Ford.
"We are pleased to announce our first platform investment in the
UK," added Daniel Edelman, Managing
Director of Flexpoint Ford. "Since its founding more than 20
years ago, AFH's management team has demonstrated long-term growth
both organically and through acquisitions. Flexpoint shares the
management team's vision for growth and believes the next phase of
AFH's development would be better conducted in the private domain.
We believe our partnership will strengthen the business and look
forward to supporting management in the future."
"Since our IPO in 2014, AFH has grown to become a leading brand
in the financial planning-led wealth management market," said
Alan Hudson, Chief Executive Officer
of AFH Financial Group plc. "The Executive Directors and I have
always sought to deliver on our strategy of organic and M&A-led
growth, but in recent years this has been curtailed by being an
AIM-quoted company. We believe the offer reflects our strong track
record of increasing shareholder value, Flexpoint's endorsement of
our strategy and confidence in the continued success of AFH, as
well as further investment required in the business."
Hudson continued, "Through its portfolio of leading financial
services investments, Flexpoint has demonstrated its strong track
record of partnering with entrepreneurial businesses, and the
Executive Directors and I believe there is a great strategic and
cultural fit for clients, staff and wider stakeholders. With the
backing of Flexpoint's expertise and access to capital, we believe
that we will be able to accelerate the delivery of our strategy.
The Executive Directors and I believe that the demand for
professional financial planning-led investment services will
continue to grow and that AFH partnered with Flexpoint will be able
to service growing client needs and grow market share."
The acquisition has been unanimously approved by the Independent
Directors of AFH and is pending both regulatory and shareholder
approval. AFH will continue to serve its clients, as usual, without
interruption.
It is intended that the transaction will be implemented by means
of a Court-sanctioned scheme of arrangement under Part 26 of the
Companies Act.
The transaction is conditional on, amongst other things,
approval of the Financial Conduct Authority of the change of
control of AFH Financial Group plc.
Raymond James Financial International Limited is acting as
exclusive financial advisor, and Kirkland & Ellis International
LLP is acting as legal advisor to Flexpoint Ford.
For full details of the offer please see the Rule 2.7
announcement at: https://afhwm.co.uk/investor-relations/announcements/
About AFH Financial Group plc
AFH (AIM: AFHP) is a leading UK financial planning-led wealth
management firm based in the Midlands with offices across the UK. Founded
in 1990 by Alan Hudson (Chief
Executive Officer), the AFH Group provides wealth management and
financial advisory services to over 20,000 clients in the UK. These
services are delivered by over 450 professional advisers and 400
support staff.
Since its IPO in 2014, AFH Group's strategy has focused on
increasing shareholder value through a combination of organic
growth through greater productivity of advisers and by value
accretive acquisitions financed on an earn-out model (having made
over 50 acquisitions since IPO). In September 2019, following feedback from
shareholders, the AFH Group announced a focus on organic
growth.
About Flexpoint Ford, LLC
Flexpoint Ford is a private equity investment firm that has
raised more than $4.3 billion in capital and specializes
in privately negotiated investments in the financial services and
healthcare industries. Since the firm's formation in 2005,
Flexpoint Ford has completed investments in more than 30 companies
across a broad range of investment sizes, structures and asset
classes. Flexpoint Ford is headquartered in Chicago with
additional offices in New York. For more information about
Flexpoint Ford, please visit www.flexpointford.com.
Media Contact:
Sam Reinhardt
Prosek Partners
646-818-9244
pro-flexpointford@prosek.com
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SOURCE Flexpoint Ford