Fairstone Group, the Sunderland-based wealth manager, is targeting the acquisition of more than 20 companies this year as it accelerates a growth strategy underpinned by its Downstream Buy-Out (DBO) model. The firm has already added eight businesses to the group in the first quarter of 2026, injecting £2bn in client assets under management, and directors have confirmed that a further 13 full acquisitions are in the pipeline for later this year.
The acquisitions span Northern Scotland, Northern Ireland, the South of England, the West Country, the East Midlands and the North East, expanding what Fairstone described as its geographic footprint. The largest of these was the purchase of Prosperity Wealth, a West Midlands wealth management and corporate financial planning specialist, which completed in February. Prosperity Wealth brought with it approximately £1.5bn in client assets, more than 5,000 clients, 80 staff and 49 advisers, and its offices in Brierley Hill will now serve as Fairstone’s regional hub for the West Midlands.
All eight firms acquired in the first quarter entered Fairstone via the DBO model, having initially joined the programme between two and four years ago. That allowed their staff and processes to be fully integrated before the final buy-out, a structure the company believes reduces risk and ensures cultural alignment.
The Downstream Buy-Out Model
At the heart of Fairstone’s expansion is the Downstream Buy-Out model, a partnership approach the group has used since 2012. Under this arrangement, Fairstone takes a minority equity stake in a target firm and provides centralised resources, technology, capital and regulatory support. This allows the partner business to concentrate on growth and profitability while Fairstone handles compliance and back-office functions. After an integration period — typically two to three years — the group acquires the remaining equity at a pre-agreed multiple of profit. Fairstone has completed more than 100 DBO partnership deals since the model was introduced, and it has been refined over time, with a greater emphasis placed on higher-growth firms from April 2025 onwards.
The DBO structure is designed to give partner firms the benefits of scale before a full sale, reducing the disruption that can accompany a conventional acquisition. Fairstone acts as an investment partner, providing the capital and infrastructure needed to support growth, while the partner firm retains operational autonomy during the integration phase. Once fully integrated, the firm sells to Fairstone, joining the group’s wider platform.
Fairstone now operates from more than 50 locations across the UK and Ireland, employing over 1,350 operational staff and regulated advisers. It oversees £23bn in assets under management on behalf of more than 125,000 clients. The group reported a 21% year-on-year increase in revenue and pro forma fee income to £168m for the year ending December 2024. Net assets stood at £150.8m at the end of 2022, and total funds committed by investors have exceeded £200m. Fairstone also reported a client retention rate of 98% and recurring income at 94% of turnover in 2022. The group is targeting £40bn in assets under management by the end of 2030.
The aggressive acquisition push comes under the leadership of Steven Cooper CBE, who took over as chief executive in October 2025, succeeding founder Lee Hartley, who moved to the role of deputy chair. Cooper, who previously held senior roles at Aldermore Bank, C. Hoare & Co and Barclays, has been tasked with doubling the size of the business by 2030. Fairstone competes with firms such as Chartered Wealth Management, Oakham and Albemarle, and is listed among the top UK distributor firms by gross sales, alongside Succession Wealth and Ascot Lloyd. The group and its subsidiaries are regulated by the Financial Conduct Authority.
“I said in January that I expected a busy first full year as CEO and that has certainly been the case so far,” Cooper said. “In just the first quarter of the year, we have added substantially to the business, not only in terms of the bare figures of client assets under management, but also in terms of our strategic presence and the depth and breadth of the services which we can offer our clients.
“For example, bringing Prosperity on board has added substantially to our expertise in areas such as corporate financial planning and employee benefits. These are things which not only benefit those clients who Prosperity have brought with them to Fairstone, but also to our existing and future clients right across the country.
“Every one of the eight firms who became part of Fairstone during Q1 brings something new to the business and strengthens the group as we look to help many more people achieve their financial goals and face the future with confidence.”
