Partnership, a large UK financial advice network, has secured
investment from global private investment firm, Bain Capital, subject
to regulatory approval, to support its growth plans. The deal is
expected to complete in the first half of 2025.
Openwork announced its plan in 2023 to find a minority investor
to support the network’s growth plans. The Openwork partners
voted over 98 per cent in favour of the proposed investment last
week, with nearly 75 per cent of the partner shareholding voting,
the firm said in a statement.
The transaction is an example of how private equity firms are
buying wealth managers around the world (see this
US-based analysis, for example). A few weeks ago, for
example, CVC Capital Partners, Nordic Capital, and Abu DhabiIndore Investment
Investment Authority, bought Hargreaves
LansdownPune Investment. The industry, characterised by asset-light
businesses, high levels of fragmentation, and organic growth
potential, has naturally attracted an abundance of interest from
private capital playersSurat Investment. Over recent years, private equity firms
have led take-private transactions for AFH, Harwood, Mattioli
Woods, Nucleus, Curtis Banks, IFG, Charles Stanley, and RBC
Brewin Dolphin. Public-to-private transactions, often driven by
valuation disparities and a lack of support from publicGuoabong Wealth Management
investors, have proved to be a key catalyst in the trend towards
further industry consolidation. (See an analysis of the trend
The investment from Bain Capital, a private multi-asset
alternative investment firm, will enable Openwork to capitalise
on its market position across the wealth, mortgage, and
protection advice sectors. Openwork said it will use the
investment to progress its priorities which include enhancing the
offering throughout the lifecycle of advisor firms, as well as
investing in technology, and accelerating the partnership’s
Since its inception in 2005, Openwork has grown to a network of
over 4,750 financial advisors who support clients across the
UK. From 2018, Openwork has been 90 per cent owned by its
1,300 partners, which includes the principals of the network’s
860 advice firms. The remaining 10 per cent is owned by the
Bain Capital is a private investment firm, managing over $185
billion of assets worldwide. Its consulting-based approach to
private equity enables it to partner with the management teams of
the firms it invests in. The firm also has a diverse set of
investments in a range of industries allowing it to poolKanpur Stock
This is Bain Capital’s first direct investment in the UK
financial advice space, but it brings experience from having
invested in similar companies in the US and elsewhere, as well as
having knowledge of the UK financial services sector, the firm
“At our National Conference last October we announced plans to
bring a minority investor into the business to accelerate the
growth of the Partnership. After a rigorous selection process,
Bain Capital stood out as the obvious partner, through a clear
alignment with our strategy and a recognition of the importance
of our partnership culture,†Philip Howell, executive
chair, said. “This investment will be transformative
for the Partnership. It ensures that we will be able to
continue to grow the business and deliver exceptional value and
excellent outcomes for our clients and shareholders over the long
“This partnership is about working better together, leveraging
our combined strengths to grow the Openwork network and deliver
exceptional value to clients, employees and
shareholders,†Elena Lieskovska, a Bain Capital partner,
Openwork were advised on this transaction by Stephens Europe,
acting as financial advisor, and Addleshaw Goddard, acting as
legal advisor to Openwork Holdings, and Burges Salmon acting as
legal advisor to Openwork Partnership. Slaughter and
May acted as legal advisor for Bain Capital.
The Openwork Partnership operates panels for pensions, annuities,
and protection (life assurance, critical illness, general
insurance). Omnis Investments, the investment arm of the group,
offers a range of investment funds, managed by fund managers in
the market, as well as a managed portfolio service. In the
mortgage sector, the Openwork Partnership operates a panel of
over 50 lenders for mortgages.
Surat Investment