In recent weeks some of you may have seen reported in the news media about a potential sale of True Potential, one of the Investment Managers chosen by Redwood Family Wealth & Estate Planners Ltd.
The potential sale of True Potential is not new news
Rumours about True Potential being sold is not something new, In 2018 True Potential initiated a sale process with investment bankers appointed to help it look for a buyer. These talks broke down in early 2019 with the sale not going ahead. Bearing in mind True Potential’s very strong growth to be one of the U.K.’s largest investment managers.
“This won’t be the last time that rumours of a potential sale will be discussed in the media”, says Jasmine Lambert, MD of Redwood Family Wealth & Estate Planners Ltd.
Should Redwood Clients be concerned about a possible sale?
“A potential acquisition of True Potential is a red flag to us as it could result in either a positive or negative outcome”, Jasmine advises, adding: “The acquisition of True Potential by a larger Investment Management company or larger Private Equity Firm could give them more resources to continually improve customer service and invest even more in their innovative technology. This, in turn, allows them to reduce their fees and could even help improve performance.”
Jasmine is also pragmatic about the potential downsides of a sale, saying: “If the acquisition results in changes to the True Potential Investment Management Team, which then goes on to affect the customer service to our Clients, or if the interest in profit drives prices up and performance deteriorates, then these would all be warning signs to us and steps would be taken to remove True Potential as one of our recommended Investment Managers.”
Could an acquisition affect the relationship Redwood have with their Clients?
Jasmine is very clear on this question: “True Potential work for us, for the benefit of our Clients. Their purpose is to provide great customer service, competitive charging structures and most importantly, above-average performance for our Clients Investments and Pensions. All the time they continue to do this, we will continue to work closely with them, however, if any of these areas were to change regardless of whether an acquisition happens now or in the future, we will, of course, advise our Clients to make changes to their Investment Provider.”
“True Potential is not the only investment managers we use, and as you would expect from Redwood, we are continually reviewing the marketplace and interviewing other fund managers to always make sure that we are finding the best investment opportunities for our Clients.”
What is True Potential saying about rumours?
In a statement from Chris Leyland, the Investment Director at True Potential Investments regarding the recent news articles he says “On the press articles, we are very much aware of more media speculation about interest in True Potential. This is something we have all become used to in recent years and it should be no surprise, given the impressive results we’ve all consistently delivered. As ever, rest assured that if there is anything factual and concrete to update you on, you’ll hear it from us first.”
Keep calm and carry on!
So, it is very much business as usual, and we continue to be very happy with True Potential and the work they do for the Clients of Redwood. While an acquisition at some point is inevitable, it is unlikely to be happening any time soon.