Munnypot Limited is pleased to announce that it has entered into a partnership with Cairngorm Capital Partners LLP (Cairngorm Capital) and acquired Whitefoord LLP, to launch Verso Wealth Management (Verso), a wealth management group providing financial advice and investment management, powered by a digital platform.
Cairngorm Capital is a specialist private investment firm that provides equity capital, strategic advice and management expertise to ambitious UK companies, to drive transformational growth in their companies.
Using Munnypot’s proven and award winning technology platform, Verso will blend the expertise of its client advisors with automated advice capability, allowing cost-effective customer segmentation by value and complexity. Built to comply with the FCA’s regulatory requirements and connect with the most commonly used industry applications, Verso’s straight through processing engine facilitates financial planning, supports product selection and automates client servicing. The result is operational and regulatory efficiencies that support increased and improved client servicing and in turn, increased revenues.
Verso intends to pursue an IFA consolidation strategy. Cairngorm Capital’s buy, build and transformation expertise will support Verso’s management to execute an accelerated growth strategy, to build a market leading, digital wealth management group.
The first of these acquisitions is Whitefoord LLP, which is expected to complete shortly, subject to FCA approval, and will be Verso’s cornerstone advisor. Whitefoord offers a comprehensive wealth management service that combines discretionary investment management services and financial advice to provide private clients, trusts and pension funds with a highly personalised and bespoke service. It operates its own SIPP, ISA and trust corporation so that its clients can enjoy comprehensive solutions for all their financial planning needs. It recently launched a family office service to meet all the financial and estate planning needs of wealthy families. Based in London with a team of 31 advisors, investment professionals and support staff, it manages investment portfolios valued in excess of £300 million and provides advice on assets exceeding £310 million, as at Q1 2021. Vince Whitefoord, Whitefoord’s Chief Executive, joins Verso’s executive team leading its discretionary fund management business.
Verso’s approach overcomes the inherent inefficiencies in the advisory market, which remains highly manual. Blending the expertise of its client advisors with an automated advice capability, it will provide a high quality and cost effective service to existing and new customers that is tailored to their individual circumstances and requirements. The model will support a broader spectrum of customers, including the sizeable segment of the population that has been underserved to date, such as small savers and new investors. For advisors, the technology proposition will alleviate many of the regulatory and operational challenges impacting the IFA community, allowing them to spend more time focused on their clients.
Verso is in advanced negotiations with a number of bolt-on targets and is actively looking for further firms that it can partner with. Andrew Fay, Verso’s Chief Executive said, “Verso will make it far easier for advisors to maximise efficiency, reduce compliance risk and increase revenue. Our goal is to become the leading digitally driven IFA consolidator and there’s no limit to our ambition. We would invite any IFA firm that is interested in learning more, to contact us. We are really excited to be partnering with the team at Cairngorm Capital. They have invaluable operational and investment experience in the sector, which we look forward to drawing on. Together as partners, we will have the resources and the expertise to make Verso Wealth Management a very exciting business for IFA’s to come and be part of.”
Simon Redgrove, Verso’s Managing Director added, “The need for good quality, affordable financial advice and investment services has never been greater. Our goal is to make this advice available to everyone – not just the wealthy. Already people from all walks of life use our proprietary technology to buy the core financial products they need; our partnership with Whitefoord will broaden both the types of clients we are able to serve and the range of investment solutions that we are able to recommend.”
Vince Whitefoord, Chief Executive of Whitefoord explained, “Partnering with Verso is an obvious choice for us and the natural evolution for our firm. We have always embraced the latest technology and recently launched our digital communication portal. The digital advice platform provided by Verso will enable us to leapfrog to the next generation of digital infrastructure. Our clients greatly value our personal service and that will remain unchanged but a wholly automated advice and investment option will allow us to help their families and open up our expertise to a far wider audience. Verso’s scale and technology will deliver significant administrative cost efficiencies and regulatory upside”
Cairngorm Capital’s investment was led by Neil McGill and Lucy Graham. Neil explained, “Our firm believes that the parallel trends of the increased complexity of consumers’ advice needs, their growing adoption of digital services and rising automation in wealth management will endure over the long term. The combination of award winning technology, high quality advice and an exceptional management team ensures that the Verso Group is well placed to capitalise on this. We are delighted to be able to partner with Andrew, Simon, Vince and their teams.”