Alpha Financial Markets Consulting (AFM) is a boutique management consultancy aimed at asset managers, wealth managers and insurers. Following a period of rapid expansion, however, it has rather outgrown the adjective ‘boutique’. Its consultant headcount has more than tripled since its shares were floated in 2017, from 240 to 760. Client numbers have more than kept pace, rising from 216 to 718.
- Diversifying client base
- Struggling clients mean in-demand consultants
- Stellar US growth
- Gloomy outlook for asset managers
- Wage inflation and recruitment costs
This has translated into an impressive financial performance. Sales have risen steadily over the past five years – even during lockdown – from £44mn to £158mn, while operating profit has jumped from £6.6mn to over £20mn. Alpha’s ability to turn profits into cash is also excellent - it has reported a cash conversion rate of over 100 per cent since 2019.