Fairstone set for accelerated expansion in 2026

Fairstone is poised for a step-change in its growth during 2026 with a record number of firms being set to join its Downstream Buy-Out (DBO) acquisition programme.

The wealth management group is forecasting a 30% increase in DBO sign-ups in 2026 compared with 2025, which itself was a record year.

Fairstone says a combination of regulatory requirements, entrepreneurial ambition and opportunities presented by inter-generational wealth transfer are playing to the strengths of its unique DBO model, fuelling rising demand from IFAs and wealth management firms to join the business.

Fairstone CEO Steven Cooper CBE said: “We see 2026 as a key year in our ongoing growth with our DBO programme playing a crucial role.

“The market conditions, our reputation in the sector and the hard work which has gone into developing our DBO pipeline have given us significant momentum which we will look to capitalise on with targeted acquisitions in selected regions across the country.

“This will continue to be a vital part of Fairstone’s growth as we help thousands more clients across the country to achieve their financial goals and face the future with confidence.”

Mr Cooper, who joined the business in November last year, added: “I’m expecting a busy first full year as CEO.”

Steve McNicol, Chief Development Officer at Fairstone, said the group’s confidence in its expansion was built on the proven success of the DBO model.

The DBO offers initial, minority equity investment, operational resource, and regulatory support to partner firms, allowing them to focus on unlocking growth and building profitability without being held back by increasing regulatory headwinds or by back-office or compliance workload.

Partner firms, once fully integrated, are then able to sell to Fairstone, ensuring they realise maximum value when the time is right for them and then continue to share in the proceeds of their growth following full acquisition.

Fairstone has been using the DBO model since 2012 and so far, more than 100 firms have joined the programme.

Steve explained: “The DBO is a proven model that delivers consistent, sustainable growth for selling principals and for Fairstone as an acquirer.

“The time period between our initial minority investment and full acquisition is entirely flexible. This allows firms and their clients to get used to becoming part of Fairstone, minimising disruption during integration, while our investment and regulatory support enables them to realise latent value, growing further before a final sale.

“It also means that we have a highly predictable stream of full acquisitions into the Group. We are in regular dialogue with principals and have visibility of their growth plans and when a full sale will work for them.”

Integration issues have been regularly flagged in the wealth management sector and the wider financial services industry as a key barrier in the acquisition process.

Research from SEI in 2025 found that almost one in five acquiring firms in the UK wealth management sector had paused M&A activity to concentrate on integrating previous deals.

The FCA’s recent Consolidation Review also highlighted that while successful acquisitions can deliver scale and growth and be beneficial to clients, integration problems can see some firms falling short.

Steve McNicol said: “We are an integration-led acquirer – we partner with firms before we purchase and we only choose high quality firms with shared cultures, values and entrepreneurial ambitions.

“With regulatory pressure still a constant and the opportunity presented by inter-generational wealth transfer, we’re finding more IFAs are seizing the opportunity to partner, identifying our proven DBO model as the key to unlocking growth and maximising value.

“While every firm is different and no process is perfect, we’re very proud of our track record of successfully partnering with and ultimately acquiring so many excellent firms, in turn securing the long-term interests of their clients and protecting principals’ legacies.”

In the past two years, the average value received by a firm that has become part of Fairstone via the DBO route, has been 120% of their initial sale value after earn-out, with the most successful firm hitting 180%.

“This is an acquisition model which has proven its worth over more than a decade,” said Steve.

“It is robust, sustainable and relevant for firms of all sizes, from start-ups to large businesses, whether directly authorised or part of a network.

“We will continue to choose partner firms carefully to ensure they match our ambitions and vision to be the most trusted wealth management house in the UK and Ireland.”

Recent enhancements to the DBO model are also expected to further accelerate growth as Fairstone looks to double client assets under management to £40bn by the end of 2030.

This updated version places greater emphasis on driving higher valuations for growth-focused wealth advisory firms with Fairstone targeting strategic acquisitions in key regions, including the South of England and the Midlands.