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Hornbuckle to buy up small Sipp players after private investor takeover
by Brian Cantwell on Apr 23, 2013 at 09:05
Hornbuckle Mitchell will target the acquisition of smaller players in the Sipp sector as it looks to grow the business after its takeover by a group of private investors, new chief executive Phil Smith has announced.
Last week Hornbuckle announced the sale of a 60% controlling stake in the business to Smith, previously managing director of Barclays Wealth, and Richard Wohanka, who now has the single largest shareholding and will become non-executive chairman.
Wohanka has held chief executive positions at both Barings Asset Management and BNP Paribas Investment Partners. Tim O’Connor, former boss of UBS’s aborted platform, has also joined as managing director of proposition and distribution.
Smith (pictured, left) said the firm would be targeting the acquisition of providers with assets of less than £2 billion as it looked to exploit a ‘plethora of distressed sellers’, following the introduction of stringent new capital adequacy rules.
‘I’m convinced opportunities for expansion will come along, but I would class us as intelligent buyers: everything must be right. There are some fantastic businesses operating with assets under £2 billion, or much smaller, which operate great franchises with great service for clients,’ he said.
‘Anybody with assets under administration of £2 billion is going to find it quite hard to stay in the game and make money, and invest to provide the client service required over time.’
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