The advisers who are members of the Openwork Partnership have voted in favour of private equity firm Bain Capital becoming a minority shareholder in the network.
Earlier this month (October 10), FT Adviser revealed Bain Capital was expected to invest £120mn which would result in the firm owning approximately 30 per cent of Openwork.
But since Openwork's members are majority owners of the partnership, this deal was subject to their approval.
More than 98 per cent of Openwork partners voted in favour of the deal last week which means it can now proceed - subject to regulatory approval.
Nearly 75 per cent of the partner shareholding voted, a record number compared to previous partnership voting patterns.
The deal is expected to complete in the first half of 2025.
Openwork has said Bain's investment will allow it to capitalise on its market position across the wealth, mortgage, and protection advice sectors.
The network will use the investment to enhance its offering throughout the lifecycle of adviser firms, as well as investing in technology, and accelerating growth of the partnership through strategic initiatives.
Philip Howell, executive chairman of Openwork, said: "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."
Since its inception in 2005, Openwork has grown to a network of over 4,750 financial advisers.
Openwork has been 90 per cent owned by its 1,300 partners - including the principals of the network's 860 advice firms - since 2018 - when Zurich sold its stake.
The remaining 10 per cent is owned by Openwork's employees.
The deal marks Bain Capital’s first direct investment in the UK financial advice space, but it has already invested in this sector in the US.
Elena Lieskovska, a Bain Capital partner, said: "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.
"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."
amy.austin@ft.com
