True Potential has appointed Tesco Bank boss Gerry Mallon as its new chief executive after Daniel Harrison stepped down from the role.
Last week, Harrison revealed that after 17 years with the Newcastle-headquartered company, and more than 25 years in financial services, it was time to “step back”.
Jeff Casson, who is currently the chief investment officer, will be the interim chief executive until Mallon takes up the role in early 2025.
Mallon has been chief executive of Tesco Bank for more than six years and was a member of the Tesco PLC executive committee.
He has also been chief executive of Ulster Bank Ireland and before that was chief executive of Danske Bank UK.
Mallon has also held leadership and advisory positions at McKinsey & Co and Bank of Ireland. He was chairman of the Irish Football Association between 2014 and 2020 and he is currently a non-executive director of Heart of Midlothian FC.
Mallon said: “I am looking forward to building on the impressive work of Daniel Harrison and his fellow co-founders and to working with the highly talented team of colleagues to continue to help our clients do more with their money.”
In 2021 True Potential sold a majority stake of its business to private equity firm Cinven for an undisclosed sum.
At the time, the firm said the investment would allow it to continue its double-digit growth and develop its investment technology platform.
Until 2019, True Potential was owned by American private equity firm FTV Capital but the company bought itself back - though FTV retained a minority stake in the business.
Then, in November last year, his father David Harrison said he was retiring but he kept his small shareholding in the company.
At the end of August, the firm published its Q2 results showing it had amassed £31.4bn in assets under administration.
According to an analyst’s note at the time, Q2 saw 10.4 per cent annualised net inflows, a trend similar to what the rest of the industry has experienced.
But they added that in True Potential’s case, much of the flows had been stimulated by the investments in client onboarding, particularly the 8 per cent offer for retiring IFAs.
Analysts from Hannam & Partners wrote: “Additions to client onboarding costs were £236mn in 2022 and £186mn in 2023. Since Q1, there has been a transition to a new offer for IFAs. The simple headline is that the 8 per cent offer is not there, but the reality is more nuanced.
“IFAs will now join True Potential as a TP Wealth Management partner, and over two years will bring clients on board either to the central investment proposition or onto the advice platform. During this period they will benefit from the advice fees they are charging.”
amy.austin@ft.com
