Bain Capital has invested £120m in the Openwork Partnership to take a 30% stake in the financial advice network.
The Financial Conduct Authority (FCA) has given its approval to the deal.
Following board approval, Elena Lieskovska, a partner at Bain Capital, will join the board.
The proposed deal was announced in October 2024, when Openwork made clear its intention to seek an investor to support strategic growth plans. Around 98% of votes cast by partners were in favour of the proposed investment by Bain Capital.
Openwork has also agreed a new debt facility with Santander to provide an expanded £35m revolving credit facility. It said the combination of incoming equity and debt will allow Openwork to accelerate its adviser succession and renewal programmes.
Openwork added the deal can accelerate its growth strategy with additional investment capital in key areas such as recruitment, adviser succession, enhanced adviser tools, together with new technology and data management capabilities.
With more advisers and an enhanced service proposition, it added it will be well placed to reach its ambition of becoming the leading financial advice network nationwide.
Since its 2005 launch, Openwork has grown to a network of more than 4,800 advisers who support client needs across the UK.
Since 2018, Openwork has been 90% owned by over 1,300 partners, which includes the principals of the network’s 860 advice firms.
Philip Howell, CEO at Openwork, said: “Since announcing our intentions to partner with Bain Capital, we have been working closely together in priming a programme of initiatives to accelerate our growth and enhance our offering.
“The strategy will firmly establish Openwork as the leading provider of holistic advice to clients and their families across the UK.
“With Bain Capital at our side, we are entering an exciting chapter with a real sense of optimism and growing momentum.
“There could not be a more fitting way to celebrate our 20th anniversary as The Openwork Partnership.”
Lieskovska added: “We are thrilled to formally close our investment in The Openwork Partnership.
“This marks the beginning of an exciting new chapter where we will work closely to leverage our combined strengths.
“Our focus will be on supporting Openwork’s growth and enhancing the experience for clients, colleagues, and shareholders through strategic initiatives and technology investments.
“We look forward to a successful partnership that will drive exceptional value and outcomes across the board.”
