Explore Equity enters into partnership with Vertus Capital
Explore Equity, together with Watrium AS (Watrium), have partnered with Vertus Capital (Vertus) to establish the leading growth partner to Independent Financial Advisers (IFA) in the UK. The partnership is a continuation of the Explore partnership approach, leveraging both the team’s deep competence and experience in the asset management sector as well as experience from other partnerships in regulated and fragmented human capital dependent sectors.
Vertus has historically been backing IFAs through debt provision and support, hence built strong relationships with IFA firms over time. The partnership, together with founder and CEO Matthew Marais, will use Vertus as a platform to acquire controllable minority stakes in leading independent IFAs and support the IFAs in their continued organic and structural growth.
Vertus is uniquely positioned to address the unmet demand in the market for a partnership-based approach to high performing IFA businesses, not interested in traditional outright consolidation. The Vertus strategy will leverage several structural tailwinds in the UK IFA market, including an expanding wealth base, a growing need for bespoke financial advice, a shift from defined benefit to self-administered pensions, a structural shift from banks to independent advisors, and a fragmented industry with increased pressure to scale and tech enable the operations.
“We are excited to partner with Explore and Watrium who bring proven experience in growth through partnerships, solid understanding of and network within the asset management sector, and capital to the partnership. Together, we will make Vertus the preferred growth partner to leading IFAs, building the next generation of financial planning firms in the UK” says Matthew Marais.
The partnership approach secures attractive entry valuations, forming a solid foundation for development of the leading UK IFA platform. The Value Creation Plan includes to grow Vertus to ~£20bn in FUM.
The partnership marks Explore’s sixth platform investment to date and the second platform in Fund II. It is another testament to the Explore partnership approach to invest in leading growth companies together with existing owners, management and with our Limited Partners, this on the back of a jointly developed and industrially anchored Value Creation Plan.
To learn more about Vertus, please visit: https://vertuscapital.co.uk/
For more information, please contact:
Matthew Marais, CEO at Vertus Capital, matthew.marais@vertuscapital.co.uk
Simen Vier Simensen, Partner at Explore Equity, svs@exploreequity.com
About Explore
Explore Equity is a partnership equity growth fund investing in Nordic companies with solid and distinct growth characteristics. We seek to drive value creation together with existing management and partners by leveraging more than 100 years of experience in professional and financial services and in industrial and consumer product companies.