Buyout firm Penta chooses bankers for sale of Britain's Amber River, sources say

By Charlie Conchie, Amy-Jo Crowley and Andres Gonzalez

LONDON (Reuters) -Private equity firm Penta Capital has enlisted bankers to sell financial planning company Amber River, four sources familiar with the matter said, in what would be the latest in a wave of dealmaking to hit Britain's financial advice industry.

Advisers at Rothschild have been lined up to prepare the company for a sale, which could take place before the end of the year, two of the people said, asking not to be identified because the information is not public.

Penta is looking to sell at a valuation north of 800 million pounds ($1.07 billion), one of the other sources said, adding the fund could retain a stake in the company.

Rothschild and Amber River declined to comment. Penta Capital did not respond to request for comment.

A sale of Amber River, led by Mary-Anne McIntyre, would be the latest in a string of deals across Britain's fragmented financial planning industry as private equity investors look to snap up smaller independent firms and capitalise on demand for personalised financial advice.

Last year, 127 financial advice deals were announced publicly at a "significantly higher" cumulative valuation than those in 2023, according to a report by research firm Next Wealth.

Dealmaking in the sector has drawn scrutiny from regulators, however.

The Financial Conduct Authority kicked off a review of financial advice consolidation last October and called on firms to request approval prior to any deals, warning that companies must "hold adequate financial resources at all times".

Founded in 2019 as Socium Group, Amber River was given 160 million pounds by Penta Capital to buy up smaller financial planning outfits with the aim of creating a "national financial advice business", Penta said at the time.

Amber River has since acquired over 70 businesses, according to corporate registry filings, and now has around 194 financial planners overseeing 14.6 billion pounds in assets for around 38,000 clients, according to its website.

($1 = 0.7439 pounds)

(Reporting by Charlie Conchie, Amy Jo Crowley and Andres Gonzales in London. Editing by Anousha Sakoui, Tommy Reggiori Wilkes and Joe Bavier)