One of the largest private equity groups in the world is buying AIM's financial planner Harwood Wealth Management Group for about £ 100 million.
Sky News found that Carlyle, which owns companies in Britain, including Addison Lee, the minivan operator, and MyDentist, the dental chain, has struck a deal to buy Harwood.
Sources said the acquisition would be announced on the London Stock Exchange on Monday morning.
Harwood, which has about £ 5 billion in assets under management or influence, is expected to be around £ 100 million.
It is understood that the deal was identified by Carlyle as a platform to build a much larger wealth manager, leading a new wave of consolidation in the industry.
This will cause payments to Harwood Wealth shareholders, including the eponymous investment manager Harwood Capital.
One person close to the situation said that the price Carlyle was paying would not include a significant premium to Friday's closing stock price following a recent sharp increase in Harwood Wealth shares.
Carlyle's interest in an acquisition comes after a series of acquisitions and fluctuations involving other UK private equity managers.
Harwood Wealth Management Group was created in 2016 through the merger of Compass Wealth Management Group and Wellian Investment Solutions.
Wellian was acquired immediately before the London AIM junior listed group.
Evercore Partners, the investment bank, is advising Harwood on the deal.
A Harwood spokeswoman declined to comment on Sunday, while Carlyle did not respond to several requests for comment.