Sanlam UK, part of financial services group Sanlam, has launched a practice buyout scheme in an effort to strengthen its position as a wealth manager in the UK.

Already managing over £50 billion ($75.4 billion) in client assets, Sanlam continues to see the region as a key player in its global portfolio. The UK branch hopes to have in excess of £6 billion of funds under management by 2017, by acquiring advisory businesses which aspire to have more than £100 million in funds under management.

The Practice Buy Out scheme has caused significant interest from owners of such businesses who are approaching retirement or seeking an exit strategy, the firm said.

Sanlam UK would offer a statement of intent to acquire the business at a pre-agreed future date, typically within two to five years, if it felt the business had met specific criteria, including demonstrating a strong track record in compliance and integrity.

“As a result of both the upheaval in the domestic and global economy and the implementation of the Retail Distribution Review, many principals have been forced to consider new routes for the creation and realisation of value. In our view, many options exist within the market although few satisfy the need for the unification of a long-term, viable business model, suited to meeting the requirements of both the client and the business with a value proposition that is transparent, believable and, of course, deliverable,” said Oliver Couchman, head of partnerships.

“Our Practice Buy Out proposition is such an offering - one which delivers an elegant, client-centred business model whilst helping to secure the long-term future of the partner, through association with Sanlam’s financial and operational strength,” he said.