LONDON – October 28, 2024 - The Openwork Partnership (Openwork), one of the UK’s largest financial advice networks, today announces a strategic investment from leading global private investment firm, Bain Capital.
In 2023 Openwork announced its intention to seek a minority investor to support the network’s strategic growth plans. The Openwork Partners voted over 98% in favour of the proposed investment by Bain Capital on 24 October 2024 which is a resounding endorsement of the decision to select Bain Capital. In addition, nearly 75% of the partner shareholding voted, a record number compared to previous partnership voting patterns. The deal remains subject to regulatory approval and is expected to complete in H1 2025.
The primary investment from Bain Capital will allow Openwork to capitalise on its unique market position across the wealth, mortgage, and protection advice sectors. Openwork will use the investment to progress its core priorities which include enhancing the offering throughout the lifecycle of adviser firms, as well as investing in technology, and accelerating growth of the Partnership through strategic initiatives.
Since its inception in 2005, Openwork has grown to a network of over 4,750 financial advisers who support client needs across the UK. From 2018 Openwork has been 90% owned by its 1,200 Partners, which includes the principals of the network’s 860 advice firms. The remaining 10% is owned by the firm’s employees.
Bain Capital is a leading private investment firm, managing over $185bn of assets worldwide. Its consulting-based approach to private equity enables it to partner closely with the management teams of the firms it invests in. The firm also has a diverse set of investments in a broad range of industries allowing it to pool experience. This is Bain Capital’s first direct investment in the UK Financial Advice space, but it brings experience from having invested in similar companies in the US and elsewhere, as well as deep knowledge of the UK Financial Services sector.
Philip Howell, Executive Chair, commented on the new strategic investment: “At our National Conference last October we announced plans to bring a minority investor into the business to accelerate the growth of the Partnership. After a rigorous selection process, Bain Capital stood out as the obvious partner, through a clear alignment with our strategy and a recognition of the importance of our partnership culture. This investment will be transformative for the Partnership. It ensures that we will be able to continue to grow the business and deliver exceptional value and excellent outcomes for our clients and shareholders over the long term.”
“This partnership is about working better together, leveraging our combined strengths to grow the Openwork network and deliver exceptional value to clients, employees and shareholders,” said Elena Lieskovska, a Bain Capital Partner. “We look forward to helping facilitate the adviser lifecycle and succession planning, providing capital for the growth of member firms and deploying investments in technology to improve the user experience.”
Openwork were advised on this Transaction by Stephens Europe Ltd, acting as Financial Adviser, and Addleshaw Goddard LLP, acting as Legal Adviser to Openwork Holdings Limited, and Burges Salmon acting as Legal Adviser to Openwork Partnership LLP. Bain Capital were advised by Slaughter and May, acting as Legal Adviser.
Bain Capital
Bain Capital is one of the world's leading private multi-asset alternative investment firms that creates lasting impact for our investors, teams, businesses, and the communities in which we live. Since its founding in 1984, it has applied its insight and experience to organically expand into numerous asset classes including private equity, credit, public equity, venture capital, real estate, life sciences, insurance, and other strategic areas of focus. The firm has offices on four continents, more than 1,750 employees and approximately $185 billion in assets under management. To learn more, visit www.baincapital.com.
The Openwork Partnership
The Openwork Partnership is one of the UK’s largest financial services networks with the group having over 4,750 financial advisers operating across the UK. It operates as a directly authorised, multi-panel distribution network.
The Openwork Partnership operates panels for pensions, annuities, and protection (life assurance, critical illness, General Insurance). Omnis Investments, the investment arm of the group, offers a range of investment funds, managed by some of the best fund managers in the market, as well as a managed portfolio service.
In the mortgage sector The Openwork Partnership operates a panel of over 50 lenders for mortgages and is among the top three networks for almost all the major mortgage providers.
The Openwork Group is majority-owned by the Openwork Partnership LLP with its employees holding a minority stake.
