OakNorth has given Verso, a UK wealth and investment management group, a £4 million revolving credit facility to help it buy independent financial advisers across the country. The funding shows that more people trust Verso’s buy-and-build model as the UK advice market continues to consolidate.
Verso was founded in 2021 with help from Cairngorm Capital Partners. Since then, it has quickly expanded across the country through careful acquisitions. It now manages £2.75 billion in assets and gets more than 80% of its revenue from recurring advisory and investment management services. As the group grows, the new facility will give them flexible capital.
The £4m RCF from OakNorth will support Verso’s working capital needs as it continues to execute its disciplined buy-and-build strategy, acquiring high-quality IFA firms that align with its client-centric, proposition.
Alan Mathewson, CEO of Verso, commented on the transaction: “Verso has been built to provide advisers and clients with a modern, integrated wealth management platform that delivers both scale and personal service. OakNorth’s flexible approach and deep understanding of the wealth management and professional services sector make them a strong partner as we continue to selectively grow through acquisition. This facility provides additional capacity to support our long-term strategy while maintaining a prudent capital structure.”
Stuart Blair, Senior Director of Debt Finance at OakNorth, added: “The UK financial advisory sector continues to benefit from strong structural tailwinds, with industry forecasts pointing to growth of around 2.4% per annum through to 2030. Verso is well positioned to capitalise on this demand through its vertically integrated model, strong recurring revenues and proven acquisition strategy, and we’re delighted to support the business with flexible funding as it continues to scale. The group’s experienced management team and disciplined approach to integration further underpin its ability to grow sustainably while maintaining a high-quality client proposition.”
