The Financial Planning business will be announcing a new brand in the coming weeks whilst John Charcol will continue to trade under the brand it has successfully built over the last 40 years.
Palatine Private Equity has backed Ian Darby and the existing management team of both businesses in the management buy out. Ian Darby has joined as full time Executive Chairman of the businesses and will work alongside the incumbent management team. The John Charcol team will also be joined by Simon Knight as CEO with further senior appointments to both teams expected to be announced very shortly.
Palatine Private Equity and management have invested £14 million in the transaction. In addition to funding the initial purchase price of £8.64 million, these funds represent significant additional capital for the financial separation of the two businesses, investment in growth and the improvement of systems which will allow the management teams to continue to deliver high quality service levels to their private and corporate clients. As part of the transition from the Vendor, management plan to invest heavily in new IT and back office systems and as well as bolstering existing routes to market and building new ones.
Ian Darby, Executive Chairman, said:
“I am delighted to be able to lead this transaction to invest in a growing national financial advisory and mortgage broking business. They both employ some truly great people and we have an excellent strategy to develop and strengthen its routes to market through intelligent strategies and investment. The market opportunities available to both businesses are significant and we look forward to capitalising on these over the next few years.”
Tony Dickin and Andy Strickland led the deal for Palatine Private Equity and will join both company boards.
Tony Dickin, Partner at Palatine Private Equity, commented:
“This is a great opportunity for us to invest in two excellent businesses, operating in sectors with positive market dynamics and growth opportunities. We very much look forward to working with Ian and the team in taking both businesses forward.”
Palatine was advised by Catalyst Corporate Finance (CF advice by Richard Holden and James England), Gateleys (legal advice by Mark Halliwell), BDO (financial DD by Chris Grove) and CiL (commercial DD by Sebastian Chambers). Management was advised by Pitmans (legal advice by Sean Kelly) and Spectrum Corporate Finance (Simon Davies).
