One of the founders of rapidly growing Financial Planning firm Independent Wealth Planners (IWP) is behind the takeover today of Financial Planning and investment group Tavistock for £40m.

Tavistock Investments announced today it was entering into a 10-year ‘strategic partnership’ with Titan Wealth Holdings. As part of the deal Titan will acquire Tavistock Wealth Limited, Tavistock’s multi-asset manager, which has £1 billion in funds under management.

Titan Wealth is a new investment firm co-founded recently by Andrew Fearon, a key figure at rapidly growing Financial Planning group Independent Wealth Planners (IWP).

Mr Fearon is a founder shareholder and director of IWP where he is responsible for M&A. 

Earlier this year Tavistock rejected an ‘unwelcome’ takeover bid from Jersey-based investment firm called TEAM, which was believed to have some backing from ex-employees.

Tavistock Investments group includes an advisory network, mostly focused on Financial Planning, a Centralised Investment Proposition and a small Direct to Consumer arm which uses an app.

Titan is aiming to become a major provider of execution, settlement, custody and administration services to the asset and wealth management sector. 

In addition to acquiring Tavistock Wealth, Titan also plans to acquire Global Prime Partners Limited, a provider of platform services to institutional clients and fund managers with £2 billion in assets under administration. 

Under the terms of the Tavistock deal, Tavistock will act as Titan’s “retail distribution partner.” Tavistock says it hopes the partnership will enable it to expand its wealth management faster, both organically and through acquisitions.

Titan will acquire Tavistock Wealth for up to £40 million (equivalent to 6.58p per Tavistock share) to be paid in cash, together with a 10-year earn-out. Some £20 million will be paid on completion, with a further £20 million paid in equal annual instalments over the following 3 years, linked to the maintenance of Tavistock Wealth's revenues.

Under the strategic partnership, Tavistock will also receive additional payments over a 10-year period equivalent in value to 50% of future net income on any increased funds under management within Tavistock Wealth’s Acumen UCITS funds.

A new company within the Tavistock Investments Group, Tavistock Asset Management, (TAM) will continue to market the group’s centralised investment proposition which will include both the Acumen UCITS funds and the company’s Model Portfolio Service. TAM will retain Titan as investment manager for the MPS. 

Titan was launched by James Kaberry, executive chairman and joint CEO, a founder of Pantheon Financial Management, and Andrew Fearon, joint CEO – a partner at Welbeck, a firm that arranges finance for companies, and a founder shareholder and director of IWP. 

Mr Kaberry said: “We are excited to partner with Tavistock and look forward to a successful future together. We have been impressed by Tavistock’s leadership team, the business that they have developed, and the outstanding investment funds run by Tavistock Wealth.”

Brian Raven, Tavistock’s chief executive, said: “This is a great opportunity for both companies. Whilst Tavistock Wealth is becoming part of Titan, we will still be working closely with our highly successful investment team. The partnership with Titan endorses our corporate strategy and will enable us to accelerate the growth of our business and deliver maximum value to our shareholders.”