Financial advice network The Openwork Partnership has announced a strategic investment from private investment firm Bain Capital.

The deal is subject to regulatory approval and is expected to complete in the first half of 2025.

Openwork announced plans last year to seek a minority investor to support the network’s growth plans.

Earlier this month, the Openwork partners voted over 98 per cent in favour of the proposed investment by Bain Capital, with a record turnout of nearly 75 per cent.

The primary investment from Bain Capital will seek to enable Openwork to capitalise on its market position across the wealth, mortgage and protection advice sectors.

Openwork stated that it will use the investment to progress its ‘core priorities’, which include enhancing the offering throughout the lifecycle of adviser firms, as well as investing in technology, and accelerating growth of the partnership through strategic initiatives.

Stephens Europe Ltd provided advice to Openwork on the transaction, acting as financial adviser, while Addleshaw Goddard LLP acted as legal adviser to Openwork Holdings Limited, and Burges Salmon provided legal advice to Openwork Partnership LLP.

Bain Capital was advised by Slaughter and May, acting as legal adviser.

This transaction was Bain Capital’s first direct investment in the UK financial advice space.

Openwork has a network of more than 4,750 financial advisers and, since 2018, it has been 90 per cent owned by its 1,300 partners, with the remaining 10 per cent owned by the firm’s employees.

“At our National Conference last October, we announced plans to bring a minority investor into the business to accelerate the growth of the partnership,” said Openwork executive chair, Philip Howell.

“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.”

Bain Capital partner, Elena Lieskovska, added: “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.”

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