Skipton sells £900m wealth management operation

SKIPTON Building Society has continued to off load subsidiary businesses with a deal to sell its Torquil Clark wealth management operation.

The Wolverhampton-based firm, which manages £900m of client assets, has been acquired by national wealth manager Bellpenny for an undisclosed sum.

It follows Skipton, the UK’s fourth largest society, selling its mortgage services operation Homeloan Management for £47.5m to Bristol-based Computershare and its health insurance arm PHP for an undisclosed sum.

The deal, which also has an office in Carnforth near Lancaster, sees Torquil Clark’s managing director John Chapman join Bellpenny to head up the rebranded direct business and he will join Bellpenny’s executive team.

Torquil Clark, which was founded in 1990, provides financial advice to high net worth clients, is Bellpenny’s biggest acquisition and its 21st since it launched in October 2012 backed by Los Angeles-based global investment firm Oaktree.

Torquil Clark’s £900m of funds under management takes Bellpenny’s funds under management to more than £2.5bn.

The deal incorporates Torquil Clark’s wealth management and employee benefits businesses. It also includes Torquil Clark’s execution-only business TQ Invest, which accounts for more than £500m of the funds under management.

Employees of Torquil Clark, which include 16 financial planners and more than 50 support staff, will join Bellpenny. The local presence will be retained, under the Bellpenny brand, and will become the company’s Midlands hub, providing a base for further expansion in the region.

Lester Wilson, of law firm DWF, advised Bellpenny on the acquisition.

Bellpenny chief executive, Kevin Ronaldson, said: “Torquil Clark has become a true heavyweight of the UK financial planning scene over the last 25 years. It is a reflection of how far Bellpenny has come that we’re already in a position to be making acquisitions on this scale.

“This acquisition will be especially important for us because it incorporates a substantial, execution-only business in the form of TQ Invest. Having a direct operation alongside comprehensive wealth management and employee benefits offerings will vastly extend Bellpenny’s market reach and appeal, by enabling us to deal with clients in whatever way best suits their personal needs. Crucially, it will also mean we’re ideally positioned to meet the expectations of the next generation of investors for whom the ability to transact when, where and how they wish is viewed as a given.”

Skipton Group chief executive David Cutter said: “We are pleased with the way we have been able to develop Torquil Clark since it has been part of the Skipton Group, in collaboration with its management team.

“However, under Bellpenny’s new ownership, there are many potential new opportunities for the business to realise and we very much look forward to seeing it flourish in the years to come.”

Grenville Turner, chairman of Bellpenny, said: “It is hugely rewarding to see our ambitious long-term plans for the business coming to fruition. This acquisition will be another significant milestone for Bellpenny in its journey to become the UK’s most trusted financial advice brand.”

John Chapman, managing director of Torquil Clark, said: “With its strong financial backing, clear vision and relentlessly customer-focussed approach, I fully expect Bellpenny to be one of the dominant players on the UK financial planning scene over the coming years. Torquil Clark clients and staff can look forward to a very bright future within the Bellpenny fold.

“At a personal level, I am very excited at the prospect of joining Bellpenny’s Executive Team and leading the company’s ambitious growth strategy in the direct market.”

Dahren Naidoo and Chris Dereix Addleshaw Goddard advised Skipton on the transaction.

 

 

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