3i Group plc (“3i”), and funds managed by 3i, announce they have agreed to the sale of Bestinvest, the UK wealth manager and online investment broker, to funds managed by Permira for an undisclosed sum. The transaction is subject only to FCA change of control clearance.

3i and funds held a majority stake in Bestinvest and the sale will generate total proceeds of approximately £45 million.  Proceeds to 3i Group plc of approximately £25 million represent a £19m uplift over June 2013 value and a £21m uplift over March 2013 value.

3i invested in Bestinvest in August 2007 to support the company’s growth strategy and strengthen its market position in the UK wealth management industry.

Despite challenging market and economic conditions during the first phase of its ownership, 3i was able to drive significant business improvement.   3i strengthened the executive team with the introductions of Mike Covell as Chairman and Peter Hall as Chief Executive.  In addition, the leadership team was enhanced with further appointments including a new COO and CIO, all of whom previously held senior roles at major wealth and asset management firms.

Working closely with management, 3i has helped Bestinvest grow through funding the development of its award winning on-line investment platform and the creation of a national adviser network through the 2010 acquisition of Haines Watts Financial Services.

Ian Lobley Partner at 3i, commented:  “During 3i’s investment, Bestinvest has been transformed as a business and continued to grow, despite some challenging times in the financial markets.   Today Bestinvest has around £5bn of funds under management and a strong reputation in the industry.  As Bestinvest enters a new phase of development we thought now was the time for us to realise the value created with the management team and introduce a new partner to support the company’s future growth.”

Peter Hall, Chief Executive at Bestinvest, commented: “3i has been a strong and committed partner for Bestinvest and we are hugely grateful for their support.  Together we have been able to successfully develop the business to a stage where we are widely recognised as a major beneficiary from the changing regulatory landscape and are exceptionally well-positioned for future growth.”

Bestinvest and 3i were advised by Evercore and Macfarlanes. Permira were advised by Fenchurch Advisory Partners and Freshfields Bruckhaus Deringer. Bestinvest’s management were advised by Jamieson Corporate Finance and DLA Piper.

-Ends-

 

For further information, contact:

3i Group plc
Kathryn van der Kroft
Tel: +44 20 7975 3021
Email: kathryn.vanderkroft@3i.com

Notes to editors:

About 3i Group

3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas. For further information, please visit: www.3i.com.

About Bestinvest

Founded in 1986, Bestinvest has grown to become a leading private client investment adviser, looking after £5 billion of assets. We offer a range of investment services from the Online Investment Service for self-directed investors to Investment Advisory and Investment Management services for clients who do not have the time or inclination to manage their own investments.

All of our services are underpinned by rigorous research aimed at identifying those fund managers we believe will deliver long-term superior performance. We also have a team of expert financial planners with nationwide coverage to help clients with their pensions, retirement or Inheritance Tax planning. At Bestinvest, we pride ourselves on offering the highest levels of professionalism and expertise with transparent, competitive prices. We are pleased that our greatest source of new business is from personal referrals from existing clients.

Bestinvest has won numerous awards including UK Wealth Manager of the Year 2013, Best Wealth Manager for Investments 2013, Best Stockbroker for Customer Service 2012 and 2011 Self Select ISA Provider of the Year as voted by readers of the Investors Chronicle and the Financial Times. Bestinvest’s Select service was recently ranked as the highest-scoring investment platform when judged on cost, service, range of features and breadth of investment choice by specialist consultancy The Platforum.

Headquartered in Mayfair, London, Bestinvest employs more than 200 staff and has an extensive network of regional offices. For further information, please visit: www.bestinvest.co.uk

Regulatory information

This transaction involved a recommendation of 3i Investments plc.