Management Due Diligence specialists, The Quinn Partnership, has advised Palatine Private Equity on it’s management buyout of the mortgage broking business, John Charcol, and the financial planning business of the Towergate Group. The Financial Planning business will be announcing a new brand in the coming weeks whilst John Charcol will continue to trade under the brand it has successfully built over the last 40 years.

Palatine has backed Ian Darby and the existing management team of both businesses in the management buyout. Ian Darby has joined as full time Executive Chairman of the businesses and will work alongside the incumbent management team. The John Charcol team will also be joined by Simon Knight as CEO, with further senior appointments to both teams expected to be announced very shortly.

Palatine and management have invested £14 million in the transaction. In addition to funding the initial purchase price of £8.64 million, these funds represent significant additional capital for the financial separation of the two businesses, investment in growth and the improvement of systems which will allow the management teams to continue to deliver high quality service levels to their private and corporate clients. As part of the transition from the vendor, management plan to invest heavily in new IT and back office systems and as well as bolstering existing routes to market and building new ones.

Tony Dickin and Andy Strickland led the deal for Palatine Private Equity and will join both company boards. Palatine have now completed eight deals from their second fund which closed at £150m in June 2013.

Ian Darby, Executive Chairman, said: “I am delighted to be able to lead this transaction to invest in a growing national financial advisory and mortgage broking business. They both employ some truly great people and we have an excellent strategy to develop and strengthen its routes to market through intelligent strategies and investment. The market opportunities available to both businesses are significant and we look forward to capitalising on these over the next few years.”

Tony Dickin, Partner, Palatine Private Equity, commented: “This is a great opportunity for us to invest in two excellent businesses, operating in sectors with positive market dynamics and growth opportunities. We very much look forward to working with Ian and the team in taking both businesses forward.”

Paul Quinn, Director at The Quinn Partnership commented: “Ian Darby is an experienced business leader leading an accomplished team and, with Palatine’s added expertise, is well positioned to take this exciting opportunity forward”.

To discuss Management Due Diligence or nay other services email enquiries@thequinnpartnership.co.uk