Perspective

Private Equity Manager (GP)

Case study

About the company

Perspective is a wealth and investment manager with 143 advisers providing coverage of the UK market through a network of 40 local offices.

Headquartered in Chorley, United Kingdom, the business provides financial advisory services in the areas of retirement planning, asset management, personal wealth and corporate planning for customers in the United Kingdom.

Investment rationale

• The financial advisory market in the UK is highly fragmented. CBPE saw the potential to consolidate the market through Perspective.
• The business had strong foundations from which to launch a buy-and-build strategy. With a strong compliance culture, client and adviser churn was low. The team was highly experienced and well-aligned with CBPE on strategy. The business had experience of undertaking M&A but had only recently started its M&A journey.
• CBPE and the team recognised the opportunity to build a diversified wealth manager of scale through acquisitive growth of the long tail of relatively small Independent Financial Adviser (“IFA”) firms. Many of these IFAs were approaching retirement and did not have the resources to invest in new technology and compliance systems.
• CBPE partnered with Perspective’s management team, who all reinvested in the business, therefore ensuring a strong alignment of business objectives.
• CBPE understood the key element of a successful wealth business and the importance of maintaining Perspective’s client-centric culture, which reduced compliance risks and ensured client retention and growth.

Private equity manager profile

• Founded in 1984, CBPE is a London-based private equity investment firm that specialises in investing in small and middle-market companies in the UK. The firm has a particular focus on acquiring businesses from founders and management teams in sectors such as healthcare, business and financial services, industrials and technology.
• Since becoming an independent business in 2008, CBPE has raised three funds and has over £1bn in assets under management.
• CBPE works very closely with the management teams of its portfolio companies to drive growth, and is adept at implementing buy-and-build strategies. Since 2008, CBPE has completed more than180 investments, demonstrating its active role in the market.

Our relationship

• Pantheon has a long-established relationship with CBPE. It is a primary investor in several funds, and a secondary investor in CBPE IX and has also previously co-invested alongside the manager.

Active management and value creation

• During CBPE’s investment, the business grew significantly from £2.6bn to £8.0bn of assets under management through a focused buy-and-build investment strategy, supported by strong organic growth.
• Together with Perspective, CBPE built a highly efficient M&A execution and integration team, which allowed Perspective to become the go-to acquirer for retiring Independent Financial Adviser businesses. Perspective has completed over 50 acquisitions since CBPE invested in it.
• CBPE facilitated significant investments in central support functions and technology. This enabled all acquisitions to benefit from consistently high standards of advice and compliance.

Exit

• In February 2024, Perspective agreed a sale to Charlesbank Capital Partners, a US middle-market private equity firm. The transaction closed in May 2024. PIP made a return of 5.4x on the original cost.