Strategic development
Since the foundation of London Wall Partners LLP (“LWP”) on 18 May 2012, our aim has been to serve our clients in the highest quality manner with proper independent advice and good investment outcomes – nothing has changed in this regard.
About two years ago, ten years after its formation, the Partners met to discuss how to take the firm onto the next stage of its development from the then size of around £7,000,000 in revenues, 50 people and around £1 billion on which we advised over 240 families. In light of (i) increasing regulatory costs, (ii) the demand for good people given the industry economics, and (iii) the significant investment required into technology and investment processes, we concluded more scale was required and the best way to achieve this was to find a suitable partner with whom to join forces. We, therefore, set out to discreetly discuss the matter with various parties and were entirely clear that any such partner would need to have the same ethos of being 100% focused on the best client outcomes and well-being of staff, and be committed to providing independent advice for clients. In addition to this, they would need to have the capital resources to assist us in competing effectively and efficiently in the market place and developing the business.
During our discussions with various industry participants, we met an independent financial advisory firm who had developed an extensive national presence over the past few years, but had no presence in the City of London, which they were keen to build and develop as part of their strategic plans hence their interest in LWP. As this seemed like an interesting fit for us, we entered into detailed discussions with Succession Group Limited (‘SGL’), a subsidiary of Aviva, which operates under the name of Succession Wealth and has 19 offices around the country, employing over 200 advisers and looking after clients’ assets of c. £10 billion. The more we discussed our future together, the more we became convinced they were an appropriate fit for us and would present us with new opportunities and synergies for the benefit of all concerned including, most importantly, our clients and staff. Accordingly, after careful deliberation, we decided to enter into an exclusivity period late last year, resulting in an agreement for SGL to acquire 100% of the membership units in LWP, which received FCA approval, and was completed on 30 April 2024.
SGL envisages that LWP will provide a basis from which to springboard further growth among, inter alia, City professionals, executives in industry, entrepreneurs and family estates. In turn, resources will be invested in enhancing the LWP investment proposition to achieve improved efficiency with a view to introducing a discretionary service for clients, where appropriate. The Partners of LWP have committed to continue to play a leading part in the firm’s development in the years ahead. Nothing will effectively change with management, team leaders and staff members other than what would happen in the normal course of business to improve the firm – we therefore look forward to serving you as ever and enhancing the experience you have with us both on a personal level and with acceptable investment results, which we are determined to improve.
LWP will operate as a wholly owned subsidiary of SGL and the management of both firms will work together in the coming months to complete the integration process with a view to obtaining the best of both worlds. However, the three pillars of personal relationships, customised service and independent financial advice will remain central, and independence on financial recommendations will remain a core principle. We will, of course, keep you closely abreast of pertinent developments and will communicate further through our quarterly updates and individual financial reviews, as appropriate.
Personally, I am as excited about the future as ever in terms of providing the highest level of proper independent advice to clients. We will be working closely with our new partners to ensure service levels and value for money are optimised.
If you have any questions, I shall, of course, be pleased to hear from you,
Nicholas Fletcher