Nucleus Financial Platforms Expands Services through Acquisition of Third Financial

Nucleus Financial Platforms is pleased to announce the recent acquisition of Third Financial, a prominent investment platform and front-to-back wealth management software provider. Third Financial has been serving discretionary wealth managers, multi-family offices, and adviser consolidators, and the deal is expected to significantly impact the group’s platform with Assets Under Administration (AUA) reaching around £90bn.

Third Financial’s business has demonstrated impressive organic growth, with revenue increasing by over 30% in 2023. The company boasts a client base of over 50 in the UK and administers £6bn of assets on its platform, along with an additional £40bn of assets via its software system, Tercero.

This strategic acquisition is poised to enhance Nucleus’ platform solutions, expanding its offerings to advisory firms of all sizes. In addition to the existing retail retirement platform and specialist SIPP and SSAS products, Nucleus will leverage Third Financial’s proprietary technology to provide an improved ‘adviser-as-a-platform’ proposition, catering to the needs of larger businesses seeking to offer their own platform.

Research by NextWealth points to the growing trend of larger advisory groups exploring the establishment of their own platform as a means to boost revenue, mitigate risk, and enhance operational efficiency. This approach offers advisers greater control over products, services, and pricing, making it an appealing option for many in the industry.

According to Nucleus officials, the integration with Third Financial aligns with the group’s strategic goal of expanding its scale and capability through both organic growth and strategic acquisitions. Following the completion of the acquisition, the group’s platform AUA is projected to reach approximately £90bn.

Richard Rowney, Chief Executive Officer of Nucleus, expressed his enthusiasm about the acquisition, emphasizing the combined potential of their scale, expertise, and relationships with Third Financial’s innovative technology. He highlighted their commitment to delivering a broader proposition to meet the diverse needs of wealth managers and advisory businesses in the sector.

Meanwhile, Ian Partington, Group Chief Executive of Third Financial, emphasized the cultural alignment between the two organizations and the shared dedication to excellence in client service. He discussed the expanded capabilities and resources resulting from the acquisition, underscoring their joint focus on providing outstanding products and services to both existing and future clients.

The acquisition of Third Financial represents a significant milestone for Nucleus Financial Platforms, signaling a new phase of growth and opportunity for the company. With the combined strengths and expertise of the two firms, the expanded services are expected to bring substantial benefits to wealth managers, advisory businesses, and ultimately, their clients.