BrazilAlpha FMC buys asset management counterpart Axxsys Consulting
Axxsys Consulting, a consultancy with offices two offices in Europe and two in the Americas, has been acquired by Alpha FMC, a larger consulting firm that also specialises in the asset and wealth management industry.
The two consultancies show strong resemblances in their heritage. Both firms were founded in 2003, in the UK, and both provide advice and implementation support to asset and wealth managers. By joining forces, the consulting firms deepen and broaden their service portfolio to the benefit of their clients.
Philip Ritchie, a partner at Axxsys Consulting, elaborated; “I truly believe in the potential this relationship provides for the development of our business, and that being part of Alpha FMC is the very best place for us to achieve our corporate ambitions in the future.”
London-headquartered Axxsys will operate as a largely standalone entity within Alpha FMC, and retain its current branding and organisation structure. “Yet with the backing of Alpha FMC, we will begin to explore growth opportunities in new geographies.”
For Alpha FMC, the move is aligned to the firm’s growth strategy. After going public two years ago, the consultancy has since been working to expand its operations as quickly as possible. In its latest financial year, Alpha FMC increased its revenue by 15% to £76 million, up from £66 million the year previous. Profitability – measured as adjusted EBITDA – similarly jumped by 18% to £16.5 million.
“This acquisition demonstrates our focus on continuing Alpha’s growth through highly selective acquisitions, as well as via continued organic expansion,” said Euan Fraser, Alpha FMC’s chief executive. The firm’s most recent previous deal was at the end of 2017, when Track Two, a data services consultancy for asset management, joined Alpha FMC in Germany.
The synergies in service and footprint build on two factors. First, Axxsys has an established presence in the Nordics and Canada, adding these two new markets to Alpha FMC’s footprint of ten offices globally.
Second, Axxsys specialises in investment management solutions, with expertise spanning portfolio management, performance and risk, sales and distribution, and the implementation of data and technology systems, with particular expertise in the SimCorp investment management system. This expertise deepens its suite of services in the investment management vertical.
In other recent consulting deals in the asset and wealth management industry, Accenture earlier this year purchased global wealth management provider Orbium (500 professionals), while in the third quarter of last year Capgemini bought a 20% stake in Indosuez Wealth Management.
