LONDON, UK: Marwyn Acquisition Company II Limited announced the appointment of Mark Hodges as Chairman with effect from 19 June 2022. 

In connection with this appointment, the strategy of the Company has been refined such that it will now focus on pursuing Business Acquisition opportunities in the financial services, consumer and technology sectors.

James Corsellis, Director of the Company and Managing Partner of Marwyn, commented: “We are delighted to be working with Mark and look forward to him leading MAC II. Mark brings both exceptional experience but also a completely differentiated vision for how customers can be better served to meet their needs and those of the people who depend on them into the future, and we are immensely excited to be able to be part of that journey.”

Mark Hodges, Chairman of MAC II, commented: “I am delighted to be joining MAC II and look forward to working with Marwyn given their excellent track record at building businesses.”

Mark has over 30 years’ experience across the financial services and consumer sectors, including extensive FTSE 100 PLC board experience with Centrica plc and Aviva plc. As former CEO of ReAssure, Mark led the business through the £425m acquisition of Quilter’s UK Heritage business and oversaw the sale of Reassure to Phoenix Group Holdings in 2020 for £3.25bn. At the time of the sale, ReAssure had approximately £80bn of assets under administration, 4 million customers and approximately 2,500 employees.

Revised sector focus

In line with Mark’s appointment, the Company’s initial focus for investment has been refined to the financial services, consumer and technology sectors.

Summary of Market Backdrop

We believe that the current market backdrop has amongst a range of drivers, four notable interrelated themes which the Directors believe are shaping a clear customer need that remains largely unmet.

Changing Population and demographics

Per latest estimates, there are currently 21 million people aged 55 and over in the UK (2020) and 99 million people aged 55 and over in the US (2021). This global trend is likely to have a significant impact on economies, social care systems and household finances and the Directors believe future financial solutions will need to reflect an increasing level of intergenerational financial and social dependencies with financial products, advice and life solutions needing to be tailored to meet a spectrum of complex multi-generational needs.

Wealth transfer and the role of families

Intergenerational wealth transfer is expected to exceed US$68 trillion, with £5.5 trillion of this in the UK, underpinning the increasing importance of the role played by families in providing future financial solutions.

·    In the UK, one in every two first-time buyers aged under 35 is receiving financial support from their parents;

·   71 per cent. of these new homeowners say they would not have been likely to buy without financial support from family or friends; 

·    75 per cent. of parents provide financial support to children who have left home;

·    43 per cent. of parents with children aged 30+ say they are helping them financially;

·   In the US in 2018, families and friends supported one in every five existing home buyers with the purchase of 1.2 million homes, financing US$317 billion worth of homes; and

·    US parents are spending US$500 billion on their adult children per annum.

Social and non-financial family support

·    5.4 million people in the UK provide unpaid care for a friend or family member with over 1.4 million people providing fifty or more hours of care per week. The peak age of carers in the UK is 55-64 with 29 per cent. of adults providing care and 22 per cent. of people aged over 65 providing unpaid care.

·    In the US, where 53 million people are providing unpaid care to an adult with health or functional needs. 61 per cent. of these carers are fully employed and 45 per cent. say caregiving had at least one financial impact (e.g. stopped saving or took on more debt).

·   10 million caregivers (25 per cent. of US caregivers) fall into the millennial age range (22-37), of which, 73 per cent. are employed but also spend an average of 21 hours a week caring for loved ones.

Concentration of wealth

·   In the UK, household wealth is principally concentrated in property (36 per cent.) and pension assets (42 per cent.);

·   In the US, household wealth is similarly concentrated in pensions (20 per cent.), real estate (24 per cent.) and equities (27 per cent.).

Opportunities for a new approach to family-focussed financial solutions

With the combination of these social and macroeconomic conditions and trends, the Directors believe all generations are facing increasingly challenging financial situations which are creating several problems to be solved.

The Directors believe there is a well-defined need and opportunity, now more than ever, for clear and impartial support and solutions to be provided to, and shared amongst, friends, family and peers.

Strategy Execution

The Company intends to execute its strategy through a combination of selective M&A of platform and bolt-on businesses, potential strategic partnerships with established financial services operators as well as ongoing operational improvements. Target company market segments, principally expected to be in the UK and US, may include, but are not limited to:

·    FinTech digital platforms

·    Digital content platforms

·    Life and pensions

·    Life-insurance assets

·    Lifetime mortgages and equity release

·    Wealth managers and advisers

·    Brokerage and associated services

·    Mortgage advisory

·    Healthcare related services

·    Estate planning and associated legal and tax services

·    Later life planning and assisted care services