Fairstone celebrates 100th Downstream Buy Out, cementing position as market-leading acquirer

Fairstone has reached a major milestone after signing up the 100^th firm to its market-leading Downstream Buy Out (DBO) programme.

Richardson Premier Wealth Ltd becomes the 100^th partner firm to join Fairstone via the DBO route, reinforcing Fairstone’s position as one of the most established and proven acquirers in the financial advice sector.

The innovative DBO model offers capital investment, operational resource, and regulatory support to partner firms, allowing them to focus on developing their performance without being restricted by back-office or compliance workload.

It also gives firms the ability to sell at the optimum time, ensuring they realise maximum value when the time is right for them and they share in the proceeds of their growth.

The DBO model is an established, proven model that has helped Fairstone grow to more than 60,000 wealth clients with £20bn of assets under management (AUM). The firm aims to double that figure to £40bn by the end of 2030.

Lee Hartley, CEO of Fairstone, said: “We are absolutely delighted to welcome Richardson Premier Wealth Ltd as the 100^th DBO firm to join Fairstone.

“It is a high quality, trusted independent financial adviser which really looks after its clients and is firmly focused on sustainable growth, making it a perfect partner for us.

“Reaching our 100th DBO is a proud moment, not just for Fairstone, but for every partner firm that has trusted in our model. However, this is very much a staging post, and nowhere near a final destination.

“We’re determined to grow our business far beyond this point as we pursue our vision of being the most trusted wealth management firm in the UK and Ireland.

“We are in active discussions with a number of other potential DBO partners as we strategically select companies to expand our footprint and work towards our next milestone of £40billion in client assets.”

Richardson Premier Wealth is based in Halifax, West Yorkshire, and is a family-owned business run by Paul Richardson. The firm also has a presence in Glasgow.

It advises more than 200 clients with assets under management of just over £50m.

Firm principal Paul Richardson said: “We’re thrilled to be joining Fairstone. From the first conversation we had with their team, it was clear that their focus on putting the client first and creating long-term, sustainable growth was a perfect fit for us.

“By helping us with regulation, compliance, resources and technology support and innovation, Fairstone will enable us to spend more time focusing on clients and pursuing our growth plans for the business. It’s a real win-win for us and for our clients.”

Every firm that has joined Fairstone via the DBO route to date has received at least 100% of their initial sale value, with many having achieved considerably more.

In the past two years, the average value received after earn-out has been 120%, with the most successful firm hitting 180%.

Steve McNicol, Chief Development Officer at Fairstone, said: “The DBO programme is all about integration, not consolidation.

“It gives firms the capacity and resources to grow at a faster pace than they would be able to under their own steam while retaining control of the business.

“This is very much a long-term relationship too. We want principals and advisers to stay on once they become part of Fairstone and continue to grow the business – to date, every principal who has joined Fairstone from the DBO programme has stayed with us, as have the vast majority of advisers.”

As Fairstone targets £40bn of client assets under management by the end of 2030, it is fine-tuning its DBO model for accelerated growth.

This updated version places greater emphasis on driving higher valuations for growth-focused wealth advisory firms as Fairstone targets strategic acquisitions in key regions.

Enhancements include a more dynamic valuation framework, directly tied to business performance and client outcomes, enabling firms to realise greater value as they grow.

Lee Hartley explained: “The enhanced DBO model builds on the most established track record in the industry to ensure we enter the 2030s in even better shape, helping many more firms to fulfil their ambitions and thousands more clients achieve their financial goals.”