Mattioli Woods agrees £25.6m deal for asset management firm

Mattioli Woods has agreed to acquire private client adviser and asset management business Hurley Partners for £25.6 million.

The deal, which will see the listed Leicester wealth management firm extend its footprint in Surrey, is expected to be completed in Q2 subject to regulatory approval.

Founded in 2013, Hurley Partners has offices in London, Surrey and Booth Street, in Manchester.

The company boasts £570 million of client assets, comprising of approximately £380 million of discretionary funds under management, £50 million of non-discretionary assets and £140 million of other pension assets. 

In the year ended 30 April 2019, Hurley generated revenues of £5.68 million and pre-tax profits of £0.75 million. 

All 33 of its staff will be retained by Mattioli Woods following the deal.

Ian Mattioli, Chief Executive Officer of Mattioli Woods, said: “This exciting acquisition is an important step forward for Mattioli Woods, as we continue to expand our operations.  Our discussions with the management team have confirmed the strong cultural fit and our common approach to looking after clients, where the strategy of growing the enlarged Group with the client always in mind clearly resonates. 

“Hurley Partners serves a similar client base to Mattioli Woods, with the many complementary elements between our businesses enhancing our specialist pension knowledge, discretionary portfolio management and financial planning propositions.  We believe the range of products and services that Mattioli Woods has to offer can support the excellent outcomes from which Hurley’s clients already benefit.  In addition, there are cost savings to be realised from combining our operations in London and Manchester. 

“The Hurley team has a proven ability to win high quality new business and the transaction gives us an exciting new distribution channel for Mattioli Woods’ services. Acting with integrity and treating clients as we would wish to be treated ourselves are central to our culture and key to maintaining the long-term multi-generational client relationships that will deliver value for all stakeholders. 

“The acquisition provides a long term, value-accretive opportunity for the Group, despite the broader challenges the market is currently experiencing. Like Mattioli Woods, part of Hurley’s revenues are fee-based, rather than being linked to the value of assets under management, administration or advice, giving our combined business a revenue profile that is less sensitive to market performance. Our profit outlook for the year remains in line with management’s expectations and I believe this transaction will strengthen our position in a market that is continuing to consolidate.”

Tony Hurley, chairman of Hurley Partners, added: “This is a highly positive development for everyone associated with Hurley Partners and especially our clients and employees. Putting clients at the heart of everything we do is central to Hurley Partners’ culture and we recognise the commitment of Mattioli Woods to this principle. Clients will notice no difference in our approach, which has been built on personal service and clear communication alongside our knowledge and expertise.  

“I am delighted to confirm that all of the employees of Hurley Partners will be remaining with the newly combined group and will continue to operate from our existing locations. The highest level of commitment of all directors and staff remains unaltered. We look forward to working together as part of a strong and progressive wealth management group.”