The chief executive of Close Brothers Asset Management has said the sale of his business by Close Brothers to private equity firm Oaktree will accelerate the pace at which is conducts adviser acquisitions.
Eddy Reynolds said Oaktree's acquisition of CBAM was a vote of confidence in its existing strategy and management, which will remain in place.
CBAM itself, which is the wealth management arm of Close Brothers, will be rebranded within the next 18 months and move to new headquarters.
Reynolds said: "If you are in a larger corporate structure, you have various committees and so on but going forward the decision making body will be the CBAM board so we will be able to execute our strategy more effectively.
"Oaktree are really supportive of our plans to invest in technology and there is also going to be capital to develop our inorganic growth. This is most likely to focus on accelerating our acquisitions of IFA businesses. We are really keen to build up that side of the business."
Last year CBAM bought Dorset-based advice business Bottriell Adams with the firm's partners, financial planners and support team all joining the company as part of the deal.
Reynolds said he didn't feel the CBAM proposition had many gaps, citing the fact that the company already has its own platform and fund management business.
Reynolds said: "We run funds, we have our own platform, so in terms of the key elements of the vertical stack, it is all there. There is maybe some stuff at the margin we need to do, like maybe Junior Isas."
The transaction is subject to regulatory approval and is expected to complete in early 2025.
Federico Alvares Demalde, managing director at Oaktree, said: “We are excited about the acquisition of CBAM, which represents a significant opportunity to further develop the business and strengthen its service offering.
"This new chapter will enhance the business agility, enabling a more effective response to market changes while providing a stable platform for our financial planners and investment managers to thrive. We are committed to supporting the business in improving its processes and becoming more customer-centric to meet the evolving needs of our clients.”
