HPS Investment Partners, a private credit group acquired by BlackStone last year, is preparing a potential sale of Nucleus Financial Platforms, the UK-based financial advice and investment platform, according to a report by Reuters.
The report cites four unnamed people familiar with the matter as revealing that early discussions have taken place with advisers, though no formal process has begun. A deal could value Nucleus at around £1.5bn ($2bn), based on sector comparables and recent growth, one source said. However, others noted that prospective buyers may wait to assess the success of Nucleus’s ongoing technology migration before attaching firm valuations.
Nucleus administers more than £100bn of assets across its two retail investment platforms, serving over 250,000 financial advisers. The business has grown rapidly, with 2023 EBITDA rising 48% to £70.7m on revenues of £157.2m, according to Companies House filings.
HPS acquired control of Nucleus in 2022 from Epiris, which retains a minority stake. Since then, the firm has pursued an acquisitive strategy, buying pensions provider Curtis Banks in 2023 and investment platform Third Financial in 2024, while also holding a stake in Canadian financial services group Canaccord Genuity.
Private equity funds and wealth technology specialists are expected to show interest should a formal sale process launch. HPS and Nucleus declined to comment.
