Rathbones takes stake in financial advisor

Investment firm Rathbone Brothers has acquired just under one-fifth of both Vision Independent Financial Planning and its sister company, Castle Investment Solutions.

Rathbone Brothers has paid £2m in cash for a 19.9% stake in the pair. The stakes have been purchased from the founders of Vision and Castle, namely Roger Edwards and Paul Sweaton, and their spouses.

Rathbone Brothers has the option to take total ownership of the two businesses in 2015 for a mixture of cash and Rathbone shares, with a further potential deferred element payable at the start of 2018. If Rathbone chooses not to exercise this option, the founders of the acquired businesses have the right to buy back the stakes they sold to Rathbones for £2m.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Vision is an independent specialist financial advice network focusing on high net worth private clients. Rathbone Investment Management already has an existing discretionary fund management panel relationship with Vision.

As for Castle, it operates as a sister company to Vision, providing it with certain administrative services.

JH