Key Takeaways
- • Cinven is exploring a potential sale of UK wealth management platform True Potential, which could value the business at several billion pounds, according to Bloomberg.
- • The private equity firm has held preliminary discussions with potential advisers, but deliberations remain at an early stage and no transaction is certain.
- • Cinven acquired a majority stake in the Newcastle-based firm in 2021, in a deal reportedly valuing it at up to £2bn.
- • True Potential manages more than £40bn in assets for over 640,000 clients, and Cinven declined to comment.
Summary
Cinven is exploring a potential sale of True Potential, the UK wealth management and investment platform, according to Bloomberg. The private equity firm could realize a valuation of several billion pounds from the business, though Bloomberg reports that discussions remain preliminary and that there is no certainty a transaction will proceed. Cinven has reportedly held early talks with potential advisers on a possible deal.
Cinven acquired a majority stake in the Newcastle-based company in 2021, in a transaction reportedly valuing it at up to £2bn. Founded in 2007, True Potential provides financial advice and investment platform services, and manages more than £40bn in assets for over 640,000 clients. Cinven declined to comment on the potential transaction.
A potential disposal would take place amid continued consolidation in the UK wealth management sector, which is being driven by rising regulatory and technology costs as well as growing demand for financial advice. Recent comparable transactions include NatWest's £2.7bn acquisition of Evelyn Partners. Canaccord Genuity has also reportedly been in discussions to sell its UK wealth management operations to a consortium led by Centerbridge Partners, according to the same reporting.
Cinven acquired a majority stake in the Newcastle-based company in 2021, in a transaction reportedly valuing it at up to £2bn. Founded in 2007, True Potential provides financial advice and investment platform services, and manages more than £40bn in assets for over 640,000 clients. Cinven declined to comment on the potential transaction.
A potential disposal would take place amid continued consolidation in the UK wealth management sector, which is being driven by rising regulatory and technology costs as well as growing demand for financial advice. Recent comparable transactions include NatWest's £2.7bn acquisition of Evelyn Partners. Canaccord Genuity has also reportedly been in discussions to sell its UK wealth management operations to a consortium led by Centerbridge Partners, according to the same reporting.
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