IPS is merging with the boutique advisor to move it into the UK mid-league where it believes scale and mutual cultures at the firms will benefit both client sets.

Multi-asset investment managerIPS Capital has completed a merger with Prospect Wealth Management to move the combined business into the UK mid-sized market, and push total assets managed up to around £600 million.

The merger is expected to boost services and personalisation to high and ultra-high net worth and mass affluent UK and international investors, the two firms said in a statement yesterday. The union is emblematic of the march to the altar among smaller advisors seeking to gain value through scale. Prospect, a branch of Raymond James, will add six advisors to IPS’ investment team in the deal, and Prospect CEO and founder Matthew Hunt will become an IPS partner. IPS said that it has logged growth of around 10 to 15 per cent in recent years and believes its personalised service will set the new business apart from larger, often listed, wealth managers competing in the space. The group was advised in the deal by Roxburgh Milkins.

Prospect CEO Hunt added that the two firms are “completely complementary" in terms of investment capabilities, culture and distribution focus. "We have known each other for around seven years, and this strategic partnership is great news for both client sets.”