Collins Stewart

Terry Smith executed a management buyout of Collins Stewart in 2000, taking the firm from a private partnership into a publicly listed consolidator. His strategy used the firm's own quoted shares to acquire dozens of smaller wealth management, advisory, and brokerage shops, scaling assets under management rapidly through M&A rather than pure organic growth. Smith also imposed his high-conviction buy-and-hold equity philosophy on the discretionary portfolios managed for clients.

Collins Stewart operated three main business lines. Its stockbroking and corporate advisory arm advised UK small- and mid-cap companies on M&A and capital raising while making markets in their securities. The wealth management division managed discretionary portfolios for mass-affluent and high-net-worth clients, concentrated in London and the Channel Islands tax havens. The third arm was its controlling interest in interdealer broker Tullett Prebon, which matched trades for institutional dealers across interest rates, currencies, and fixed income globally.