Private equity investor Bain Capital is moving ahead with its plans to take a significant stake in adviser network the Openwork Partnership, one of the UK’s biggest advice networks with 4,750 advisers.

The investment has been confirmed by Openwork following a vote to accept by its shareholders but still requires regulatory approval.

Openwork calls the investment by Bain, “a strategic investment from (a) leading global private investment firm.”

It is Bain's first direct investment in the UK financial advice sector.

In 2023 Openwork revealed it was looking for a minority investor to support its network growth plans.

Openwork Partners last week voted over 98% in favour of the proposed investment by Bain Capital with nearly 75% of the partner shareholding voting. The deal remains subject to regulatory approval and is expected to complete in H1 2025, Openwork said.

Openwork says the new investment will enable it to build on its market positions in wealth management, mortgages and the protection advice sectors.

Openwork will use the money to invest in enhancing its offering, “throughout the lifecycle of adviser firms”, as well as investing in technology and accelerating growth of the partnership.

Launched in 2005, Openwork has grown to a network of more than 4,750 financial advisers.  Since 2018 the firm has been 90% owned by its 1,300 Partners, which includes the principals of the network’s 860 advice firms. The remaining 10% is owned by the firm’s employees.

Bain Capital manages £142bn of assets around the globe. 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 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, Openwork executive chair, said: “At our national conference last October we announced plans to bring a minority investor into the business to accelerate the growth of the Partnership. After a rigorous selection process, Bain Capital stood out as the obvious partner, through a clear alignment with our strategy and a recognition of the importance of our partnership culture. 

“This investment will be transformative for the partnership. It ensures that we will be able to continue to grow the business and deliver exceptional value and excellent outcomes for our clients and shareholders over the long term.” 

Elena Lieskovska, a Bain Capital partner, said: “This partnership is about working better together, leveraging our combined strengths to grow the Openwork network and deliver exceptional value to clients, employees and shareholders.

“We look forward to helping facilitate the adviser lifecycle and succession planning, providing capital for the growth of member firms and deploying investments in technology to improve the user experience.”

Openwork was advised on the transaction by Stephens Europe Ltd, acting as financial adviser, and Addleshaw Goddard LLP, acting as legal adviser to Openwork Holdings Limited, and Burges Salmon acting as legal adviser to Openwork Partnership LLP. Bain Capital was advised by Slaughter and May, acting legal adviser.