A new IFA consolidator, which aims to be one of the UK’s leading Financial Planning businesses, has launched today with its first acquisition, a £1.1bn AUA firm.

Absolute Financial Group has been backed by a £115m equity commitment from Inflexion Private Equity Partners.

Its first acquisition, for an undisclosed sum, is Absolute Financial Management, a South East-based IFA firm, with headquarters in Ashford, Kent and £1.1bn in AUA.

The deal is conditional on FCA change in control approval.

Absolute is led by chief executive David Carter, formerly CEO of CMS Wealth. Its non-executive chairman is Paul Hogarth, founder of Tatton Asset Management and Perspective Financial Group.

The firm said it plans to unite advisory businesses within a unified structure, promoting adviser support and holistic Financial Planning.

It said Absolute Financial Management will serve as the central hub for subsequent acquisitions under a single national brand.

David Carter, CEO of Absolute Financial Group said: “We know there is concern among the IFA community about losing independence and a decline of client service standards when selling their business. We created Absolute to ensure that the ethics, integrity and legacy of an IFA’s business is maintained within a group that shares their values.”

Paul Hogarth, non-executive chair, said: “Partnering with Inflexion, alongside a leadership team I trust, presents an exceptional opportunity to build a business that genuinely champions the IFA profession.”

Andrea Bertolini, partner and head of financial services at Inflexion Private Equity Partners LLP, said: “The group will offer flexible acquisition structures, including both majority and minority sale options, and is focused on culturally-aligned firms with strong client relationships and long-term ambitions.”

• Financial Planning Today Analysis: The launch of a major new consolidator in the financial adviser sector is a reminder that there is still plenty of life left in the consolidation market, which mainly involves larger advice firms, often funded by private equity investors, buying up the client books of smaller firms. Despite some acquirers pulling back recently, many remain committed to consolidation and rapid growth, seeking to acquire assets under advice/management and additional clients. The continuing injection of private equity money is spurring this growth. For Financial Planning / financial adviser firms with decent assets, a good client book and a robust business the opportunities to exit at a substantial premium remain significant. With many thousands of planners and advisers set to retire over the next few years the consolidator market is likely to remain strong for some time to come.