AssetCo announces £10.7m acquisition of SVM Asset Management
Asset and wealth management firm AssetCo, run by Martin Gilbert, has announced that it has reached an agreement to acquire the entire issued share capital of Edinburgh-based fund management business SVM Asset Management Holdings Limited for £10.7 million.
The consideration will be satisfied by the issue of up to £9m 1% fixed rate unsecured convertible loan notes in AssetCo and, subject to balance sheet adjustments, £1.7m in cash.
The acquisition is conditional on approval by the Financial Conduct Authority (FCA) to a change in controller which is expected to occur by the end of September this year.
AssetCo believes that, given the strong investment performance delivered by SVM’s fund managers, there are significant opportunities to enhance the distribution and marketing of SVM’s existing funds and, over time, to broaden the product offering. The SVM funds will also complement the existing listed equity fund strategies offered by AssetCo’s various businesses, most notably those offered by River and Mercantile Asset Management. Following completion
AssetCo will have approximately £3.5 billion of AuM in listed equity fund strategies across its various businesses. SVM and AssetCo have strong distribution capabilities as well as strong organic growth and the combination of the two, plus the wider product offerings, should result in a much stronger and broader combined entity.
Colin McLean, managing director of SVM, commented: “When I set up SVM our aim was to leverage quality research and strong fundamentals to underpin our independent thinking and deliver great investor value.
“I believe that our performance over the years demonstrates that we have been able to achieve this. I am pleased that with the backing of AssetCo we will be able to continue to build our focus on, and relationships with, existing clients, creating greater value for them, whilst also broadening our client base and growing assets.”
Martin Gilbert, chairman of AssetCo, added: “We are immensely proud to be building an asset management hub in Edinburgh that, over time, will broaden its client base across the UK and beyond. SVM is a well-regarded fund management firm, with a recognised investment style and a very strong investment track record. Its business model, people and product offering are its key assets, and it is core to AssetCo’s ambitions.
“I have known Colin and Margaret for over 30 years, and I am delighted that both have agreed to remain with SVM. Both have built phenomenal reputations as investment managers over many decades in the industry. The experience and expertise they will bring to AssetCo will be invaluable.
“I am also heartened that fund managers of the calibre of Hugh and Neil have committed to the business, as they have important roles to play. We are looking forward to working with the four of them, and the rest of the SVM team, as we develop a business to meet the evolving long-term financial needs of investors.”