Financial Standard, an IFA, is set to benefit from L Catterton's global consumer insights and network as it accelerates its growth in Japan’s independent financial advisory market.

L Catterton, a large US-headquartered consumer-focused investment firm, has entered into an agreement to invest in Financial Standard, a Tokyo-headquartered independent financial advisory (IFA) firm. The transaction, the terms of which were not disclosed, positions Financial Standard for further growth in Japan’s rapidly-expanding IFA market by using L Catterton's expertise in the consumer industry.

Japan's wealth management sector is undergoing a structural shift that is providing tailwinds for its IFA market, the firm said. Compared with households in countries such as the US, households in Japan still hold a high proportion of their financial assets in cash and deposits, but they are now increasingly reallocating their savings towards investments on the back of several secular trends and government-led initiatives. This shift is expected to persist over the coming years, auguring well for the expansion of the country’s IFA market.

Financial Standard, which has over 10,000 clients and around JPY340 billion ($2.14 billion) of assets under advisement, has built a network of partnerships with tax accounting firms in the country, a key channel for sourcing clients through referrals. Its employees in Tokyo, Nagoya, Osaka, and Fukuoka provide clients, such as mass-affluent and high net worth individuals, with asset management advice on a broad range of products and services, including securities, real estate, insurance, as well as legacy and business succession planning.

“Financial Standard has established a unique and leading position in Japan's IFA market by offering wealth management advice tailored to each client's life plan,” Taka Shimizu, a managing partner at L Catterton, said.

“L Catterton has a proven track record in the global consumer market and extensive industry connections. Its brand-building capabilities and strategic relationship with LVMH make it an especially ideal partner for us as we pursue our next phase of growth,” Takeshi Fukuda, representative director of Financial Standard, added. “Leveraging its expertise, we will strengthen our brand, broaden our network of referral partners, expand our client base, enhance our services for high net worth individuals, and augment our talent pool.”

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