Sky News has learnt that Exponent, the buyout firm, has hired investment bankers at Evercore to sell Isio.

City sources said on Wednesday that a deal was not imminent but that an auction was likely to get under way this year.

It could see Isio changing hands for several hundred million pounds, they added.

Isio, which provides pensions and wealth advice to thousands of clients, was created when Exponent backed a buyout from KPMG in 2020.

The business was augmented by the purchase of Deloitte UK's pensions arm just over a year ago.

Isio now employs more than 1,100 people.

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Under Exponent's stewardship, Isio has grown into a company with annualised revenues of £155m and earnings before interest, tax, depreciation and amortisation of £39m.

The company is part-owned by management including Andrew Coles, its chief executive.

Exponent and Isio declined to comment.