HoldCo Builders 40% CAGR for Over 15 Years: UK’s Most Profitable Roll-Up?
Jun 23, 2025
Discover how True Potential has achieved an astonishing 40% CAGR for over 15 years, becoming a leader in the UK wealth management sector. The podcast dives into their effective vertical integration and hybrid advice model, revealing the secrets behind their impressive profitability. Learn about their unique in-house fund distribution and the role it plays in driving profits. Explore the innovative M&A strategies that allow True Potential to acquire retiring advisors' client books, standing out in a competitive industry rife with regulatory challenges.
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Exceptional Operational Efficiency
- True Potential's $500k EBITDA per employee is double major peers like Charles Schwab, highlighting exceptional operational efficiency.
- Their 40% CAGR for 15 years and 70-80% EBITDA margins stem from unique small ticket M&A and platform integration.
Vertical Integration Drives Margins
- Vertical integration drives True Potential's industry-leading profitability by owning advice, custody, platform, and fund management layers.
- Over 90% AUM in in-house funds captured multiple layers of margin, yielding ~1% net margin and 70%+ EBITDA.
Hybrid Advice Enhances Scale
- Use hybrid advice to scale efficiently by centralizing human advisors delivering calls instead of costly in-person visits.
- This achieves a 2-4x higher client-to-advisor ratio versus competitors, blending cost-efficiency and personal service.