London IPO candidate Utmost sees inflows slide

A wealth soultions firm expected to IPO in London later this year has posted a fall in inflows as a boost generated by last year’s UK government tax shake up tailed off.

Utmost, owned by private equity firms Oaktree Capital and Brookfield, recorded £4.4bn of inflows in the first half of the year, down from £5.3bn the prior year. 

The group pinned the decline on a slowdown in activity caused by changes to the UK tax system in the 2024 Autumn Budget. This generated roughly £1.5bn of “one-off flows into UK products”.

Wealthier Brits scrambled to deal with former Chancellor Rachel Reeves’ decision to hike capital gains tax rates and bring pensions into the scope of inheritance tax from 2027.

Inflows across the rest of the business increased 16 per cent across the first half of the year, the company said.

“This momentum is already translating into increased sales across our key markets,” Thompson said. “The breadth of our distribution model…positions us well to capitalise on the highly attractive growth opportunities in both of our core and emerging markets.”

Potential IPO

Utmost specialises in cross-border wealth structuring and insurance policies for high net-worth individuals. Its owners are reportedly planning a £2.5bn float on London’s stock market in September.

A successful IPO would provide a welcome boost to the London Stock Exchange as it continues to grapple with a slowdown in listings. A wave of takeover deals from private buyers has also shrunk the size of the market to its lowest level ever. Stalwarts including Schroders and Beazley have been snapped up this year.

Demand and retention

In its results today, Utmost said inflows in its European business increased 50 per cent on last year, hitting nearly £3bn. Clients across the region were engaging with wealth advice as geopolitical events shook equity markets, the company said.

Total assets under administration increased six per cent to £123.4bn, up from £116.3bn the prior year. Client retention also improved, inching up to 94.4 per cent from 93.1 per cent. 

The firm credited the slight growth to “long-term attractiveness of the group’s client proposition and enduring adviser relationships”.