Aegon to take stake in Intrinsic as part of PosSol deal

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Aegon is set to take a stake in Intrinsic following its acquisition of IFA business Positive Solutions.

Fundweb sister publication Money Marketing revealed earlier today Intrinsic is to buy PosSol from Aegon.

As part of the deal, Positive Solutions will retain its brand and senior management will remain in place.

Intrinsic chief executive Richard Freeman says: “The acquisition of Positive Solutions marks a genuine step change for the Intrinsic Group and a significant milestone in our journey. Combined, we will have over 3,000 advisers and a joint turnover of almost £200m.”

Positive Solutions chief executive Peter Coleman says: “Now with the backing of Intrinsic we will continue to implement our strategic plan: to improve the appeal of our proposition to benefit our customers and help our partners make their businesses more profitable.”

Aegon bought a 60 per cent stake in PosSol in 2002 from chief executive David Harrison and bought out the remaining 40 per cent in 2005 from staff, directors and IFAs in a deal that valued the company at £163m.

The Aegon distribution arm, which includes Origen, Positive Solutions and a 20 per cent stake in Tenet, posted a combined loss of £2m for 2012.

Origen and PosSol made a combined loss of £6m in 2011 and lost £5m in 2010.

Intrinsic posted a £5.2m profit for 2012, up 62 per cent from £3.2m in 2011. The network also set aside over £2m in relation to expected complaint settlements, compared to a provision of just over £1m in 2011.

Last July, Intrinsic went through a capital restructure which saw the firm’s management buy out shareholder Lloyds Banking Group. As part of the deal, other major shareholders Sanlam and Friends Life, as well as Intrinsic management, agreed to waive six years worth of dividend payouts thought to be worth around £20m.

Intrinsic bought IFA network Mint in 2008 to give the firm an independent arm and took on national IFA Ashley Law in 2009.