The broker, to be known as Pivotal Growth Limited, will be powered by market-leading technology, first class regulatory compliance and exemplary customer service, LSL said.
It is planned that at least £200 million will be made available by way of equity and debt to fund acquisitions.
Indeed, LSL has committed up to £33.5 million and Pollen Street Capital (PSC), a specialist private equity investor, up to £62.4 million to support the acquisitions to be made by Pivotal Growth.
The investment by LSL and PSC will be supplemented with external debt finance in Pivotal Growth to fund purchases, with a view to an exit event over a three-to-six year period.
Key people
LSL’s chairman, Simon Embley, has been appointed chief executive of Pivotal Growth and will step down from his role as non-executive chair of the LSL Board, following the publication of the Group’s Preliminary Results for 2020 on 28 April 2021.
Jane Cross, previously chief risk officer of the group’s PRIMIS network and managing director of its e.surv surveying business, has been appointed chief operating officer.
Meanwhile, David Copland, previously LSL’s Director of Mortgage Services, will be the strategy and business development director.
Network
LSL operates, what it describes as, one of the largest financial services network and advisory businesses in the UK. It has around 2,600 advisers.
Through its PRIMIS intermediary network, it accounted for £32.6bn of mortgage completions in 2020, representing approximately 9% of the total purchase and remortgage market, and in 2020 provided new protection insurance policies generating around £54m of annualised premium.
LSL is also a specialist in providing mortgage and protection advice to estate agency customers.
A particular area of focus is the development of market leading technology solutions, which assist mortgage and protection advisers to run their businesses efficiently and effectively and to increase sales performance.
The Toolbox system is used to manage the operations of all PRIMIS members and will be the operating and technology platform for the Pivotal Growth “buy and build”. Pivotal Growth will also use the technology of the recently acquired Mortgage Gym and Direct Life & Pensions businesses which offer award-winning solutions for the mortgage and protection markets respectively.
Pivotal Growth has entered a long-term arrangement with PRIMIS, with all acquired businesses anticipated to become PRIMIS members, leveraging further PRIMIS’s scale and existing leading positions in the mortgage and protection markets.
David Stewart, group chief executive of LSL, said: “The launch of Pivotal Growth marks a significant milestone in the implementation of the Group’s strategy.
“It follows other significant recent announcements, including the steps we have taken to strengthen our management team and recent acquisitions of Mortgage Gym and Direct Life & Pension Services.”
He added: “The establishment of the Pivotal Growth joint venture with Pollen Street Capital will enable us to establish a leading position in the provision of direct-to-consumer advice and underpins the pre-eminent position of our PRIMIS network.”
Meanwhile, Copland added: “I am excited to be supporting the development of Pivotal Growth’s proposition as we look to work with mortgage advisers in the UK to strengthen their business proposition for the benefit of end-consumers.
“With access to PRIMIS’ first-class technology, regulatory and intermediary expertise, we will be in a strong position to support brokers with the growth of their business, helping to deliver innovative solutions and market-leading customer service to consumers throughout the UK.”
