Wealth and investment management group, Verso, has received a £4m revolving credit facility (RCF) from digital bank, OakNorth.

Verso said the new funding will support the working capital needs of its independent financial adviser (IFA) acquisition strategy.

Formed in 2021 with backing from private equity firm, Cairngorm Capital Partners, Verso has built a national wealth management group combining financial advice and discretionary investment management. The group has since grown through a buy-and-build strategy, completing nine acquisitions to date.

Verso now manages approximately £2.75bn of client assets and benefits from a recurring revenue model, with more than 80% of income generated from ongoing advisory and investment management services.

The group’s CEO, Alan Mathewson, commented: “Verso has been built to provide advisers and clients with a modern, integrated wealth management platform that delivers both scale and personal service.

“OakNorth’s flexible approach and deep understanding of the wealth management and professional services sector make them a strong partner as we continue to selectively grow through acquisition. This facility provides additional capacity to support our long-term strategy while maintaining a prudent capital structure.”

Senior director of debt finance at OakNorth, Stuart Blair, added: “The UK financial advisory sector continues to benefit from strong structural tailwinds, with industry forecasts pointing to growth of around 2.4% per annum through to 2030.

“Verso is well positioned to capitalise on this demand through its vertically integrated model, strong recurring revenues and proven acquisition strategy, and we’re delighted to support the business with flexible funding as it continues to scale.

“The group’s experienced management team and disciplined approach to integration further underpin its ability to grow sustainably while maintaining a high-quality client proposition.”

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