Two Manchester-based financial advisory firms have brought in new investment from K3 Capital. The acquisition was supported by due diligence advice from Armstrong.
In late 2022, K3 Capital was sold to US private equity firm Sun Capital in a £271 million take private deal. In the years since, it has acquired a portfolio of professional services firms, enabling it to offer four operating divisions: business sales; tax; restructuring, and technology solutions. This latest deal marks the launch of K3 Capital’s new financial services division, which will focus on delivering financial advice and investment management to a growing client base.
Founded in 2008, Manchester-based Pareto Financial Planning provides financial planning to individuals and SMEs, advising on areas such as investments, pensions, protection, tax planning and employee benefits. Since 2020, meanwhile, Luna Investment Management has provided specialist investment management services to private clients and their advisors across the UK, centred around discretionary investment management.
Michael Cauter, CEO of K3 Capital Group, commented, “This is a significant milestone in K3’s evolution. This strategic investment into Pareto’s award-winning wealth management capabilities will further support the existing management team to continue to deliver best-in-class service for their clients with deeply embedded client trust, strong values and outstanding leadership. Pareto and Luna extends K3’s lifecycle advisory model, helping businesses and their owners maximise value creation, as well as achieving their personal and professional ambitions at every stage.”
K3’s previous acquisitions also include business brokerage Knightsbridge, deals advisory businesses KBS Corporate Finance, and Knight Corporate Finance, and turnaround and insolvency firm Quantuma. The move offers Luna and Pareto the opportunity to further grow, alongside these complementary organisations.
John Stevenson, Founding Director at Pareto, remarked “We’re proud of what we’ve built at Pareto, rooted in independent advice, long-term client relationships and a fantastic team. This investment allows us to keep everything that makes Pareto special, while giving us the backing, scale and capabilities to go even further. It’s a natural fit.”
K3 Capital was supported by Armstrong, which supplied full-suite commercial due diligence on the investment in Pareto and Luna.
Founded in 2025, Armstrong is a professional services firm supporting clients in the built environment, industrials, financial services and consumer sectors, among others. Armstrong has worked with companies from early-stage to AIM listed businesses, as well as UK PE mid-market investors, debt providers and corporate investors to help secure deals such as this.
Cauter noted, “Armstrong provided comprehensive and insightful diligence, combining thorough analysis with clear perspectives. Their work gave us real confidence in this investment, and it was a pleasure working with Solomon, Rupert and the Armstrong team.”
Working with K3 Capital, Armstrong delivered comprehensive commercial due diligence, covering market analysis and benchmarking, competitive positioning, integration considerations, customer referencing, and an assessment of the growth opportunity. This helped validate the platform potential of both businesses and their fit within K3 Capital’s broader strategy.
Solomon Ishack, head of financial services at Armstrong, added, “We are delighted to have supported K3 on the launch of its financial services division through this investment. Pareto and Luna are high-quality firms with strong reputations, clear growth potential and well-established market positions. We look forward to seeing them thrive under K3 Capital Group’s ownership.”
