Manchester's Modus Private Equity has taken a 40 per cent stake in Cheadle-based Perspective Financial Group, a new holding company aiming to buy IFAs.
The equity investment has been complemented by a debt funding package from Lloyds TSB Corporate Markets, giving PFG a warchest of around £11m.
Modus Private Equity was set up two years ago by former Aberdeen Murray Johnstone duo Paul Newton and Mike Rogan, in partnership with commercial property tycoon Brendan Flood and financial services expert Paul Hogarth.
PFG will be led by Mr Hogarth, the founder of Altrincham-based IFA group Bankhall, which he sold in 2005, and Damian Keeling, the former boss of specialist insurer Carole Nash.
Perspective Financial's first two deals are for Milton Keynes-based Perspective Financial Manage- ment, a pensions, investment and wealth management firm, and fund management business Cambridge Investments.
Mr Keeling said: "We are really excited. We believe the IFA sector is ripe for consolidation. We are looking for quality firms with strong client relationships, with high levels of recurring income.
"We're already talking to two more firms and have plans for many more acquisitions in the coming months."
Mr Newton and Mr Rogan have joined the PFG board. Mr Newton said: "We believe the market opportunity is massive. The team has an excellent pedigree, and we look forward to contributing to its success."
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