Financial planning firm plans for future after £6.7m investment
Private equity firm Foresight Group has invested £6.7m into Manchester-based boutique financial planning business, Five Wealth.
The deal will support equity release for existing shareholders and provide additional growth capital.
Five Wealth operates primarily in the North West with clients across the UK.
Founded in 2016, the business has developed into a well-known wealth manager and financial advisor, with more than £670m of assets under management, and 27 staff. The business uses its established local presence to build trusted, long term relationships with individuals and their families in the region and beyond.
Foresight’s investment facilitates the retirement of Chris Little, a co-founder of Five Wealth, and provides equity release for other shareholders, as well as additional capital to support the company’s ongoing plans for organic and inorganic growth.
Under the leadership of Phil Shaw as managing director, the investment will assist the continuing ambition of Five Wealth to support individuals in the North West and beyond with their plans for a secure financial future.
Following the investment, Tim Parsons has joined Five Wealth as non-executive chair, bringing his extensive financial services and wealth management experience, including as founder and MD of Succession Wealth. The management team has been further bolstered by the addition of Jonathan Partington as finance director.
The investment has been made through Foresight’s latest North West-focused fund, the Foresight Regional Investment Fund III (FRIF III), alongside the Foresight VCT and Foresight Enterprise VCT funds.
Foresight’s first fund dedicated to the North West, managed primarily by its office based in Manchester, has invested into 17 local companies, including DA Languages, Roxy Ballroom and Mowgli Street Food. The fund has made five exits, returning more than 2.0x cost to the £58m fund. FRIF III hopes to replicate the success of this fund.
Phil Shaw said: “The Five Wealth team, bolstered by the addition of Tim Parsons and Jonathan Partington, is looking forward to helping an increasing number of individuals and their families to plan their future financial security.”
Matt McLoughlin, director at Foresight, said: “Five Wealth has long-standing client relationships and a fantastic reputation for high quality service, which provide a great foundation for ongoing success. We look forward to working with Phil and the team during the next stage of Five Wealth’s growth story.”
Rikesh Patel, corporate finance director at RSM, said: “We are thrilled to have supported Five Wealth throughout this transaction which results in the company securing funding and an investment partner to help its next stage of growth.
“It is an exciting time for the company, as it looks to expand in the coming years.”
