Private equity investor Bain Capital has taken a £120m stake in adviser network the Openwork Partnership, one of the UK’s biggest advice networks with 4,800 advisers.

The deal was first announced in October and has since been approved by the FCA and confirmed today.

Following board approval, the Openwork Partnership welcomed Bain Capital with up to 30% ownership, while Bain Capital partner Elena Lieskovska joins the Openwork board.

There was wide support for the deal, with 98% of Openwork partners voting in favour of the Bain Capital investment.

Openwork has also agreed a new debt facility with Santander to provide an expanded £35m revolving credit facility. The firm said the combination of incoming equity and debt will allow it to accelerate its adviser succession and renewal programmes.

Since being set up in 2005, Openwork has grown to a network of more than 4,800 advisers. Since 2018, Openwork has been 90% owned by more than 1,300 Partners, which includes the principals of the network’s 860 advice firms.

Bain Capital is a global private investment firm, managing more than $185bn (£137bn) of assets worldwide. It is based in Boston, USA, and invests in a variety of sectors including financial services, real estate, tech and crypto. It owns or has stakes in dozens of firms including Esure in the UK.

The firm made an aborted £530m bid to buy UK insurer LV= in 2021, but its offer was rejected by shareholders.

The Openwork stake is Bain Capital’s first direct investment in the UK financial advice space but Bain says it has invested in similar companies in the US and elsewhere and has “deep knowledge” of the UK financial services sector.

Philip Howell, CEO at Openwork, said: “Since announcing our intentions to partner with Bain Capital, we have been working closely together in priming a programme of initiatives to accelerate our growth and enhance our offering.

“The strategy will firmly establish Openwork as the leading provider of holistic advice to clients and their families across the UK. With Bain Capital at our side, we are entering an exciting chapter with a real sense of optimism and growing momentum.”

Elena Lieskovska, a Bain Capital partner, said: “This marks the beginning of an exciting new chapter where we will work closely to leverage our combined strengths. Our focus will be on supporting Openwork's growth and enhancing the experience for clients, colleagues, and shareholders through strategic initiatives and technology investments.”