Towergate, the broker and underwriter, is understood to have appointed HBOS to lead a fundraising project to raise £250m within the next six weeks.
The Times reports that the money will be used to buy up mid sized independent financial adviser practices (IFA) containing between 10 and 20 professionals.
Peter Cullum, founder of Towergate, said it could take as much as £1bn to complete consolidation of the medium sized IFA market.
Towergate has revealed that it made 16 acquisitions in the past year.
