A new growth strategy for multi-family offices

Two pieces hit the market last month which we believe shed light on a coming theme in the UK multi-family office (MFO) space. Commercial MFOs Fleming Family & Partners (FF&P) and Lord North Street (LNS) both struck or deepened partnership deals signalling a new future for the MFO market – strategic partnership for growth.

The FF&P deal saw the MFO of the Fleming family banking dynasty signed a strategic partnership deal with fellow London-based family wealth management firm Asquith & Partners (A&P), formed in 2005 by chartered accountant Richard Bertin and investment banker Nick Bedford. The deal saw FF&P take a 20 per cent stake in A&P for access to A&P’s independent advice and financial planning skills. For A&P the deal provides access to FF&P’s additional investment management expertise.

Meanwhile LNS deepened its existing relationship with Spanish-based MFO MdF Achievers (MdF) by appointing the latter’s MD Daniel de Fernando as its new CIO. The history of the relationship is that LNS first took a stake in MdF in 2009 as a result of the collegiate links formed during Mr de Fernando and LNS partner Adam Wethered’s time at JP Morgan. The two firms now combine their investment approach across their markets, creating scale by partnership.

So the two deals tell us that strategic partnership is being examined by leading and established players in the market. Ultimately, this is of course about growth and despite much fanfare over the evolution and success of the MFO sector, the kick-on to the next level, the £4-5 bn (E4.5-5.7bn) plus in AUM, has yet to materialise. By accessing like-minded partners and cross-selling skills, the MFO participants in these deals will be hoping to access new revenue opportunities without the usual expense.

Looking forward, we certainly do not expect these deals to be the last. Their peers will no doubt be looking too at similar moves but we also believe this type of deal-making has a role to play in sister sectors such as the trust market place where the client profiles are matched.

Stephen Wall is a director at wealth management strategy think-tank Scorpio Partnership