Financial planning group Fidelius has agreed a joint venture with an asset manager in a move that will see it gain £280m in assets under advice as the two companies take a stake in each other's businesses.
The deal sees Pacific Asset Management acquire Fidelius’ DFM arm, Parallel Investment Management, and assume responsibility for its model portfolios.
In return two financial planning firms belonging to Pacific, Chartered Financial Management and Zen Wealth, will join the Fidelius group.
The financial planning firms were acquired by Pacific in 2018 and 2019 and will now add a combined £280m of assets under advice to Fidelius, building on the £1.5bn it already has under its control.
Pacific has grown its assets under management to about £1.2bn in the space of four years and its chief executive, Matthew Lamb, said the agreement to take a stake in each other's businesses would allow both firms to focus on their core strengths.
Mr Lamb said: "The combination of Pacific’s investment management capabilities with the strength and breadth of Fidelius Group’s chartered financial planning expertise makes for a strong long-term partnership and great cultural fit, not only for our group, but for our advisers and all our clients.
"In simple terms, this partnership allows all of us to focus on our core strengths and gives employees and importantly our clients, the breadth of opportunities to maximise their potential for continued long term success."
Jim Grant, chief executive of Fidelius Group, said the partnership with Pacific was expected to bring "significant cost benefits to clients".
Mr Grant added: "We are very excited to welcome Chartered Financial Management Ltd and Zen Wealth to the Fidelius family - both are high quality, profitable businesses which have long shared our ‘client first’ ethos.
"I believe we have created a business model, in conjunction with Pacific, which will be attractive to advice firms that share the same core beliefs as us, that is; providing a complete financial planning service to clients, as well as retaining and building value for the future."
rachel.mortimer@ft.com
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