Bankhall founder Paul Hogarth (pictured) is at the helm of a new consolidation vehicle targeting the owners of medium-sized IFA firms who want to realise the value of their businesses or are preparing to exit the industry.

Perspective Financial Group has already acquired – and taken its name from – Perspective Financial Management, and snapped up discretionary investment manager Cambridge Investments.

The group is now aiming to expand further and is understood to have an initial funding package of £11 million. Of that, £3.7 million comes from Manchester-based Modus Private Equity, in which Hogarth is a shareholder and which has taken a 40% stake in the business. The rest of the cash comes from Lloyds TSB Corporate Markets.

Managing director Damian Keeling said the group sought businesses with high levels of recurring income and sustainable profit, with turnover between about £1 million and £2.5 million.

‘Compared to other consolidators we’re not that interested in size per se – we’re looking for quality,’ Keeling said.

‘We haven’t got macho targets like 500 RIs by next year.’

Typically, acquisitions will retain their own branding and management, but compliance will be centralised and group companies will be offered services such as technology and accounting.

Keeling said the proposition would appeal to firms wanting to avoid the ‘hassle’ of adapting to ever-changing regulatory requirements.