Martin Gilbert has been named chairman of Assetco as the firm shifts gears to focus on asset management acquisitions.
The Aberdeen Asset Management founder will replace current chairman Tudor Davies, who will take on the role of non-executive director from 15 April, while former Standard Life Aberdeen global head of markets Peter McKellar becomes deputy chairman.
Details of Gilbert’s appointment were included in a stock exchange announcement on Friday which revealed AssetCo would be changing strategy to focus on “acquiring, managing and operating asset and wealth management activities and interests”.
Current chairman Davies said Assetco had raised £55m in 2020 but because of the challenges developing an overseas business in the Middle East the board had decided to change tack and review its future strategy.
“This led to a tender offer to buy back 50% of the share capital at a cost of £26.9m, followed by the proposal to utilise the Assetco platform to build an exciting asset and wealth management business.”
Davies said Assetco believes there is “exceptional growth opportunities” to snap up asset managers that have failed to adapt to structural shifts, including changing interest rate dynamics, the shift to passive investment and lower fees, increased regulation and use of technology and a greater focus on ESG.
Martin Gilbert’s acquisition spree
Assetco’s latest announcement sheds more light on the shape of Gilbert’s dealmaking comeback.
In January Gilbert, who stepped down as co-chief executive of Standard Life Aberdeen in 2019, was among a consortium of investors who purchased a 29.8% stake in Assetco. Gilbert himself snapped up a 9.9% stake in the business, which then specialised in fire engine leasing in the Middle East, while his former Aberdeen Standard Investments colleague McKellar acquired a 3.4% stake.
Shortly after Assetco acquired a 2.9% stake in River and Mercantile which it doubled in February in a deal worth £5.7m.
In January Gilbert also purchased shares in responsible investment specialist Alquity which is run by a number of his former colleagues at Aberdeen AM.
Further proposals
The change in the AIM-listed company’s strategy will be put to a shareholder vote at the company’s AGM on 15 April.
There Assetco will also seek approval for its application to the London Stock Exchange for the readmissions of 100% of its existing share capital to AIM to take place the next day to raise cash to execute its strategy and widen its shareholder base.
It has also proposed an annual bonus and long term incentive plan (LTIP) in a bid to “attract senior executive talent”. Under the LTIP, 20% of growth in total shareholder value will be allocated to the executive directors and senior management by a remuneration committee.
Company directors alongside shareholders Harwood Capital, Harwood Capital Management (Gibraltar) and funds managed by Cadoc, are expected to vote in favour of the changes, representing 58.9% of the ordinary shares.
