The Business
Ludlow Wealth Management is a North West-based financial advice business that puts its clients and their financial peace of mind first. That’s why it has such a strong reputation for client service and its 3,300+ clients collectively entrust Ludlow with more than £1.6 billion of assets.
The Original Deal
Mobeus backed CEO Ian Hemingway in a £12 million buyout from founder Sid Ludlow in June 2017, when the business had £865m of Assets under Advice (AuA). We provided a combined debt and equity package, taking a majority stake alongside the incumbent management team, who rolled over the majority of their value.
The Realisation
Mobeus has agreed to sell Ludlow to Mattioli Woods plc for an enterprise value of £36.1 million, subject to regulatory approval and completion of a share placing by Mattioli Woods. Mattioli Woods is an AIM-listed provider of advice on wealth management and employee benefits that is acquiring Ludlow as part of its ambitious growth plans within the wealth management sector.
The Impact
Mobeus introduced chairman Phil Young (formerly CEO of leading compliance consultancy Threesixty), finance director Gordon Flower (from UK Wealth Management) and COO Rob Brown (from RBS) to create a board capable of continuing Ludlow’s impressive growth momentum.
Ludlow’s highly-rated consultants deliver outstanding service to clients, resulting in consistent double digit organic growth through referrals and recommendations. During the investment term, Mobeus worked with the team to deliver a £6.5 million refinancing with Santander in December 2018 and to make four bolt-on acquisitions, which together added £325 million of AuA. As a result, the business has almost doubled AuA to over £1.6 billion in under four years. With 22 advisers, Ludlow now provides personal financial advice to over 3,300 clients.
The sale process had two objectives: to deliver strong returns for Ludlow shareholders; and to find a partner who would continue to support Ludlow consultants and clients. This transaction achieves both those aims, delivering a 3.3x money multiple (36% IRR) for Mobeus Fund IV in under four years, whilst providing a strong partner for Ludlow for the future, who have demonstrated an excellent commercial and strategic fit with the business and its people.
The deal is subject to normal FCA change of control approval and the completion of a share placing by Mattioli Woods announced on 26 May 2021.
