Standard Life Aberdeen (SLA) is pleased to announce the sale of Parmenion Capital Partners LLP (Parmenion) to Preservation Capital Partners. Preservation Capital Partners is a leading European private equity firm which invests in market leading businesses operating within the asset light financial and business services sectors. The transaction will generate proceeds of up to £102 million.
The rationale for the sale by SLA is the simplification of its Adviser strategy around the business’ core propositions – Wrap and Elevate.
Founded in 2007, Parmenion is an award-winning investment and technology solutions business that supports financial advice firms in the creation and operation of a centralised investment proposition. It manages in excess of £8.0bn of assets on behalf of over 2,500 advisers and more than 68,000 underlying clients.
As sector specialist growth investors, Preservation Capital Partners have a track record in helping drive organic and inorganic value creation in companies that they invest. Preservation Capital Partners is a long-term investor with a concentrated strategy and as such have access to significant capital to support Parmenion in growth and consolidation within the wealth management sector.
In acquiring Parmenion, Preservation Capital Partners will gain a strong, growing business that has seen average annual net inflows of 24% of opening AUM* and nearly doubled its market share since the start of 2017.
Stephen Bird, Chief Executive Officer, Standard Life Aberdeen commented:
“I am very pleased to confirm the sale of Parmenion to Preservation Capital Partners today. The sale demonstrates our commitment to simplify our operations and reconfigure our business, and investment, around our growth vectors. In the Adviser vector, we will continue to focus on providing a market-leading proposition to financial advisers through our Wrap and Elevate platforms.”
Andrea Secci, Principal of Preservation Capital Partners commented:
“We are extremely excited to be supporting Parmenion and its management team led by Martin Jennings in its next stage of growth. The IFA platform sector is one of the most attractive sub-sectors within the UK wealth management market and is experiencing strong organic growth driven by increased regulation and
digitalisation of the advisory market. Parmenion is one of the leading platforms within the sector with its own proprietary technology that has consistently been ranked by advisers as one of the best platforms in the UK over the last 5 years.”
Martin Jennings, CEO of Parmenion added:
“Parmenion has enjoyed strong growth in recent years, and we are delighted that Preservation Capital has recognised the potential in our business, and share our future vision. Their belief in us, our teams and what we deliver every day to advisers and their clients means there is total alignment of interests, and we are genuinely excited about our future.”
*2017 to Q3 2020
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Standard Life Aberdeen is being advised by Fenchurch Advisory Partners and Pinsent Masons.
Preservation Capital Partners is being advised by Hannam & Partners, Kirkland & Ellis, Armstrong and PwC.