The London-listed wealth management firm is looking to enhance its presence in the North West with the purchase.

AFH Financial Group has agreed to acquire the assets of David Rushton Associates, a Lancashire-based financial advisory business, adding around £16.5 million ($20.8 million) to its funds under management.

The group will pay £298,125 for the business, representing 1.8 per cent of David Rushden’s funds under management. An initial cash sum of £157,500 has been paid upon completion and a further consideration of up to £140,625 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the assets acquired.

Following the acquisition, David Rushton will join AFH.

“This acquisition will strengthen our position in the North West and I look forward to working with David to continue the development of AFH in the region,” said Alan Hudson, chief executive of AFH.

“The acquisition of the assets of David Rushton follows the strategy restated in our recent trading update of making selective acquisitions to develop our expansion nationally and leverage our central investment and support functions.”