Wren Sterling has announced that its secondary management buyout has completed, following approval from the Financial Conduct Authority.
In July 2021, Wren Sterling agreed terms on a majority investment from investment funds affiliated with Lightyear Capital LLC (Lightyear) to complete a management buyout from Palatine Private Equity and shareholders. Terms were not disclosed.
Lightyear is a New York-based financial services-focused private equity firm with sector expertise in asset and wealth management.
As disclosed in July, the deal will see Wren Sterling’s management team and staff remain in place to deliver the business plan goals of growing the business through organic strategies plus, with access to funding, continuing to make selective acquisitions. The business now has more than 200 employees and intends to extend its office network in key areas.
Wren Sterling was created following a management buyout of Towergate Financial led by Ian Darby and supported by Palatine Private Equity in March 2015, and the intervening six years has seen Wren Sterling double its assets to £4.7bn under management and substantially increase its profitability.
In the period since the deal was first announced in July, Wren Sterling has enjoyed strong trading performance, welcoming hundreds of new clients and increasing its AUM by £200m.
Ian Darby, Wren Sterling’s Executive Chairman said:
“We are all delighted that we have been given the green light to proceed. It marks the start of an exciting new chapter in the history of Wren Sterling and, with Lightyear’s backing, the management team can now deliver on our growth plans, while investing in continually improving our client service and developing our talent.
“This deal is a fantastic result for Wren Sterling’s shareholders including our former investor, Palatine Private Equity, clients and employees.
“Lightyear has significant experience in our market, which will complement the ability of Wren Sterling’s management team to continue to build a successful financial advice business in the UK.”
Media contact: Nick Moules, Head of Marketing, Wren Sterling