Carlyle set to unveil takeover of Aim-listed wealth manager Harwood

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Carlyle set to unveil takeover of Aim-listed wealth manager Harwood

December 22, 2019 Syndicated 0

The US private equity giant behind Addison Lee is expected to unveil a swoop on Aim-listed Harwood Wealth Management Group tomorrow amid ongoing consolidation across the financial planning sector.

Carlyle Group, which has held a majority stake in Addison Lee since 2013 and which also bankrolled Taylor Swift’s former record label, has reportedly struck a £100m deal for Harwood, a price in line with the company’s market capitalisation at the close on Friday.

Over the past two months, shares in Harwood have surged by 24pc.

According to Cab4Now.com, which reported the acquisition, the deal will be unveiled when the London Stock Exchange opens tomorrow morning. Evercore Partners was said to have advised on the deal, although declined to comment.

Harwood Wealth Management, which was created through the merger of Compass Wealth Management and Wellian Investment Solutions, and which floated in 2016, has been growing through a number of bolt-on acquisitions in recent years.

In the 12 months to October 2018, the company spent £10.8m on buying up new businesses, and over the summer this year, agreed to pay almost £2m on three advice companies, saying that it continued “to see a healthy pool of acquisition opportunities”.

The company had said it was “working on several acquisitions at various stages of progress” at the time.

Carlyle’s expected takeover of the wealth manager would come as it seeks to dispose of its Addison Lee stake.

The firm was thought to have been targeting a sale before the end of the year, although recent reports had suggested any offer would leave Addison Lee’s lenders suffering heavy losses on debts.

Carlyle did not respond to requests for comment on Sunday evening, while Harwood declined to comment.

 

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