Nucleus and James Hay PE owner looking to sell stake - reports

Tom Ellis
clock • 2 min read
Nucleus and James Hay PE owner looking to sell stake - reports

The private equity firm that has snapped up James Hay's parent company and bought Nucleus Financial in recent years is reported to be looking to sell at least a part of its stake in the platforms already. 

Financial News reports that a number of market sources understand Epiris, the private equity owner of the two adviser platform businesses, is looking to sell in 2022.

The firm bought James Hay's parent company for £206m in 2018 and then snapped up Nucleus for around £140m in early 2021, creating a combined adviser platform business with £45m assets under administration. Epiris has since sold the financial planning business Saunderson House, which it bought from James Hay's parent company IFG in the same deal, for £150m to Rathbones.

The deal was part of a trend that has seen a number of advice firms and adviser platforms bought by private equity houses, such as True Potential, Parmenion, Novia, AFH and many more.

'I hope they keep the ethos': Advisers react to Nucleus acquisition

Financial News also reported that an information memorandum of a sale has been finalised by Epiris.

Nucleus is currently powered by Bravura technology, while James Hay has entered into a long-term deal with FNZ.

The firms said there would be no technology change for advisers who use either platform in the short-term but integration over the medium to longer term would have made sense.

Sources familiar with the situation told Professional Adviser: "Any potential changes are at the shareholder level; it remains very much business as usual for both platforms."

They added there would be "no impact on development plans, staff, advisers or their end customers."

Nucleus CEO David Ferguson said at the time of the firm's deal with Epiris: "Becoming part of this enlarged group gives us a key role in a much bigger story where we can create a leading independent platform of scale with a high tech, high touch proposition and philosophy. I think the combination of our people's talents and the size of the opportunity can see us carefully navigate the roadmap to deliver on this collective medium-term goal."

The two platform businesses have been contacted for comment.