Adviser platform Parmenion has been bought by private equity firm Preservation Capital Partners for £102m after being put up for sale by Standard Life Aberdeen (SLA).
It was revealed in November by SLA CEO Stephen Bird (pictured) that he intended to auction off the platform business, which administrates £8bn for 2,500 advisers and 68,000 clients, and keep its other, larger adviser platform propositions Wrap and Elevate.
The sale comes as part of Bird's ongoing plans to simplify SLA's structure, which he has been vocal about since taking over the firm.
Bird has previously said Parmenion was a "fantastic and highly regarded business" but that the firm's offering to financial advisers needs to be simplified.
SLA said the European private equity firm was a "long-term investor" that has access to significant capital to support Parmenion "in growth and consolidation within the wealth management sector". Preservation Capital Partners was
Parmenion was purchased by Martin Gilbert for £50m in 2016, one year before Aberdeen Asset Management merged with Standard Life.
According to the FT, the firm generated £10m a year in revenue on flat profits.
Based on a five-times revenue multiple, Parmenion would have been valued at approximately £100m during the summer of last year, according to research from Numis Securities.
SLA CEO Bird said: "The sale demonstrates our commitment to simplify our operations and reconfigure our business, and investment, around our growth vectors."
He added the business would remain in the adviser platform market with its Wrap and Elevate businesses.
Parmenion CEO Martin Jennings said he was delighted Preservation CP had recognised the "potential" in the platform business and shares its future vision.
He added: "Their belief in us, our teams and what we deliver every day to advisers and their clients means there is total alignment of interests, and we are genuinely excited about our future."
Preservation Capital Partners principal Andrea Secci said it would support Parmenion in the next stage of its growth: "The IFA platform sector is one of the most attractive sub-sectors within the UK wealth management market and is experiencing strong organic growth driven by increased regulation and digitalisation of the advisory market.
"Parmenion is one of the leading platforms within the sector with its own proprietary technology that has consistently been ranked by advisers as one of the best platforms in the UK over the last five years."