One of the North East’s fastest-growing technology companies has sold a majority stake to an international private equity firm.
Newcastle -based True Potential said the undisclosed deal with investment group Cinven would allow it to continue its double-digit growth in the financial services sector.
True Potential - which was founded in 2007 and employs around 350 people from its offices in Newburn - operates in wealth management, providing advice, investment platform and fund solutions to more than 1.4m retail clients in the 海角视频.
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The company was named Business of the Year at the European Business Awards in 2017 while founder David Harrison took the prize for Tyneside and Northumberland Business Executive of the Year the same year.
True Potential’s most recent accounts showed that its revenues rose to £184.9m last year, with operating profits of £68.7m.
Cinven, which has more than 130 investments in Europe and the US, said True Potential offered a “compelling investment opportunity with several key attractions”.
True Potential founder and chairman David Harrison said: “We identified Cinven as the right partner for True Potential’s next phase of growth due to their financial services and TMT (Technology, Media and Telecommunications) expertise.
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“Their investment will enable us to continue to deliver on our mission to revolutionise the way wealth management is provided. We have a shared vision and I am certain that this investment in True Potential alongside the existing management expertise will deliver continued growth for many years to come.”
Daniel Harrison, CEO of True Potential, added: “Our aim in this process was always to find the right partner with the same values that would benefit our clients, financial advisers and staff. In Cinven we have found that partner.
“The financial advice and investment markets are constantly evolving but we have grown consistently over 14 years by being bold, digital-first and client-focused. This investment and exciting partnership will continue that trend.”
Caspar Berendsen, partner at Cinven, said: “True Potential has a truly differentiated business model within the 海角视频 wealth management sector, where there are strong structural growth drivers. The company provides attractive services and products to financial advisers and their clients, using technology to anticipate and meet customer demands in the future as well as now.
“The combination of Cinven’s longstanding track record in both financial services and TMT, along with True Potential’s strong management team and integrated business model, will support the company’s future growth. In particular, this transaction will enable continued investment in True Potential’s financial adviser recruitment and its technology platform.
“The Cinven team looks forward to working with the excellent management team, in particular the founder-owners of the business, to support the existing strategy, building on the company’s significant growth potential and success.”
The transaction is subject to customary anti-trust and regulatory approvals.
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Advisers to the transaction included Fenchurch Advisory Partners LLP and Clifford Chance LLP (Cinven) and Credit Suisse and Freshfields Bruckhaus Deringer LLP (True Potential).
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