Foster Denovo accelerates growth in 2023 amidst economic challenges

2023 headlines:

• Foster Denovo acquired two financial advisory firms
• Progressed largest deal, buying Punter Southall’s employee benefits arm
• Revenue up to £29.1 million for seventh year of consecutive growth
• Rise in EBITDA to £5.7 million
• Assets under management grew to £1.4 billion, up by 17 per cent on 2022 across the Dynamic Portfolios and Sequel Investments
• Continued to deploy £100 million in capital provided by Crestline Investors in 2022

Foster Denovo Group has posted strong financial results for 2023 as it continues to move forward with its growth strategy amid challenging economic conditions.

The group, parent company of financial advisers Foster Denovo and investment management firm Sequel Investments, demonstrated positive progress driven by acquisition, recruitment and organic expansion over the course of the year.

The business bought two financial advisory firms – Wade Financial Services in Newcastle, and Creative Financial Solutions in Hampshire – and began the process leading to its largest acquisition to date, Punter Southall’s employee benefits division, doubling the size of its existing corporate advisory arm, Secondsight, on its completion in early 2024.

Revenue increased to £29.1 million, making 2023 the seventh consecutive year of continued growth in a climate characterised by inflationary pressure and adverse conditions in equity and bond markets.

The end of 2023 marked two years since Foster Denovo began to deploy Crestline’s funding for its acquisition programme. Over this period, EBITDA has grown £4.3 million to £5.7million.

Day-to-day adviser recruitment and a continually enhanced client offering also helped to boost inflows into the Dynamic Portfolios, to £730 million, a 33 per cent increase on the previous year.

Foster Denovo Chief Executive Roger Brosch said: “That we continue to prosper in what are universally acknowledged as tough trading conditions is testament to both our approach and the diverse strengths of the team we have brought together.

“The pipeline for further deals remains promising and we’re on course to deepen and expand our advisory presence across the UK in both private client and employee benefit advisory markets, with the backing of our investment partner, Crestline.”