HPS Investment Partners Explores Sale of UK's Nucleus Financial Platforms

HPS Investment Partners is reportedly exploring the sale of Nucleus Financial Platforms, a UK-based financial advice company. Sources close to the matter indicate that HPS has initiated preliminary discussions with advisors regarding a potential divestment of the Salisbury-based platform. A valuation of approximately £1.5 billion ($2 billion) has been suggested, which is contingent upon the successful completion of Nucleus's technology migration. Nucleus operates two retail investment platforms, managing over £100 billion in assets for 250,000 financial advisors. The company's growth is attributed to increasing demand for wealth management services and consolidation within the UK financial advisory market. In 2023, Nucleus reported a significant increase in its financial performance, with core profit rising by 48% to £70.7 million and revenue climbing 37% to £157.2 million. This strong performance has generated expectations of interest from private equity firms and wealth technology companies for a potential acquisition. HPS Investment Partners, which acquired a majority stake in Nucleus from Epiris in 2022, and Nucleus itself have declined to comment. Epiris currently holds a minority stake in the company.