Chartered Financial Planning firm Fairstone has seen its client base rise to 59,000 – a 5% increase over the past six months – with three firms joining its Downstream Buy Out (DBO) programme and a further four being fully acquired by the business.

The growth in client numbers was supported by the company’s Trustpilot score, which showed a client satisfaction rate of 98%, the firm said in a 'strategy update' released yesterday. 
 
Latest figures for the national wealth manager also show 11% outperformance across its entire portfolio of acquired businesses, with these firms delivering more revenue, profits and growth than either their own forecasts, or those upon which the buy-out agreements were based.
 
Fairstone operates what it called “a unique model” that reverses the traditional buy and build approach.

Its DBO programme enables firms to fully integrate with the business before final acquisition, a system which it claims allows a “seamless” transfer for clients and staff.

The three businesses joining Fairstone’s DBO programme in the past six months marked what the firm called “another significant step forward in its growth plan for 2019”.

The firms are:
 
• Berkshire-based Chiltern House which brought a total fee income of £3m and more than £320m AUM to Fairstone, as well as 450 active clients, eight advisers and seven support staff.

David Shepherd, company principal at Chiltern House, said: “Joining Fairstone provides continuity and reassurance to our clients that they will continue to receive the same exceptional level of service they have received for over 16 years.”
 
• East2West Financial Services, based in Scotland, brought £70m AUM to Fairstone and around 600 active clients.

A total of three advisers will also join the business, as well as five support staff.

Moira Ness, company principal at East2West, said: “We wanted the opportunity to join a national Chartered IFA where the continuity of staff for our clients was paramount.

“The professionalism and expertise of Fairstone is superb and offers support from experienced dedicated professionals.”

• Rochdale-based Norden and Bamford specialises in wealth accumulation and preservation for clients.

The deal brings total ongoing fee revenue of £900k and £120m AUM to the wider business, as well as 800 active clients, two advisers and six staff.

Wayne Davis, company principal, said: “Fairstone’s experience in aligning firms with their established policies ensured us that they are fully compliant and always put the client’s needs first.”

Through the DBO process, four businesses have been fully acquired by Fairstone over the past six months.

The acquisitions of Bankfield Financial Advisers, South West Financial Planning, Brett & Randall and Pensions and Wealth Management Services has brought more than 3,500 clients and 37 advisers and support staff into the business.

The deals also brought a total of £4m in gross fee income to the wider business and £520m in AUM.
 
Meanwhile, Fairstone’s Individual Buy Out programme, which launched in early 2018 and which ensures a “continuity of service” for their clients, has brought a further Chartered Financial Planner to the business.

Aberdeen-based Mark John Crichton brought an additional 35 clients and £19m AUM into the group.
 
Mr Crichton said: “The Fairstone business and the IBO agreement delivers a well-thought out and structured exit strategy for advisers when they choose to retire and crucially provides client security by protecting their interests at all times.”
 
Lee Hartley, CEO of Fairstone, said: “We are a full-service wealth management house delivering intelligent solutions to clients across a lifetime financial journey.

“Clients are at the centre of everything we do and our Trustpilot score is testament to our commitment to ensuring client relationships underpin all aspects of our business.
 
“We have continued to see impressive growth across all of our business streams, and we remain fully on track to delivering our growth plans in 2019.
 
“The structure of our DBO programme ensures we partner with firms with an appetite to grow and develop.

“The firms we have partnered with in the last six months have shown consistent growth and we are delighted to offer our support in all areas of regulation, technology and operations.”