Summary
InvestAcc Group’s goal is to build the UK’s leading specialist pensions administration business in the public markets. Our initial focus is on the SIPP segment as the Company Directors believe that the current market backdrop lends itself to a growing self-invested pensions market.
Market Backdrop
1. Changing population and demographics
Per 2020 estimates, there are 21 million people aged 55 and over in the UK (2020) with an expected 30 per cent. increase in the number of people aged 65-79 over the following 10 years.
2. Trapped and concentrated wealth
It is estimated that 42 per cent. of a UK household’s total wealth is principally concentrated in pension assets and 36 per cent. in property. In 2016, 65 per cent. of aggregate household total wealth in the UK was controlled by those aged 55 and above.
3. Increasing family reliance
In the UK, 46 per cent. of first-time buyer mortgages is supported by their parents, and 75 per cent. of parents provide financial support to children who have left home.
4. Intergenerational wealth transfer
The Directors expect to see an unprecedented leveI of intergenerational wealth transfer. On a global basis, by 2050, this is expected to exceed US$68 trillion, with £5.5 trillion of this in the UK.
5. Regulatory pressure in the SIPP market
A push for higher levels of consumer duty care, as well as vendor needs are driving the sector to actively consolidate. Life companies and platforms account for over 80 per cent. of the "Simple" SIPP market, but the "Full" SIPP market - serviced by specialist firms - is much more fragmented. The fragmented supply side of the SIPP market creates a structural opportunity for inorganic growth.
Strategy Execution
The Company will deliver its goal through a combination of focused buy-and-build strategy and strategic partnerships, facilitated through a unique platform.
The Company is backed by Marwyn, who have a long track record of investing in businesses across UK, Europe and North America, partnering with exceptional, industry-leading management teams to develop industry leaders. Marwyn uses publicly-listed acquisition vehicles to identify and acquire platform businesses before pursuing buy-and-build strategies to create long-term value.