Towergate launches IFA division

by Gill Montia

Story link: Towergate launches IFA division

Europe’s leading independent insurance broker, Towergate, has raised over £100 million to launch a new business that will acquire independent financial advisers (IFAs).

The group has been on the acquisition trail since it was established and has completed over 150 since 1997.

The firm says it has now identified a market opportunity to establish a national IFA division that will operate under a strong brand and complement the services currently provided to customers.

It plans to make up to 20 acquisitions by the year end and will focus on advisers to high net worth and mid net worth individuals.

The IFAs of interest to Towergate Financial will be providing advice on savings, protection and investment products to people earning at least £50,000 a year.

The new division will buy 90% of the IFA businesses it identifies as targets and is proposing to acquire up to 400 such enterprises in the next three years.

Funding for the expansion has been provided by Royal Bank of Scotland, Lloyds TSB Corporate Markets and Towergate management.