Assetco has made an offer to acquire the entire issued share capital of Revera Asset Management.
The total consideration of £2.8m will be funded by the issue of 54,639 new ordinary shares of 10p each and £1.9m in cash.
It is conditional pending FCA approval to the change in controller and the admission of the shares to trading on AIM, which is expected by the end of May 2022.
Partnering with Saracen Fund Managers
Revera is the latest in a series of acquisitions by Assetco, which under Martin Gilbert’s watch has become an investment management consolidator.
Founded in 2003, Revera has two funds that operate on the Smith & Williamson Fund Administration Limited platform:
- S&W Revera UK Dynamic Fund – approximately £108m AUM
- Skye Trust – approximately £10m AUM
The firm generated turnover of £782,161 and a profit after taxation of £63,452 for the financial year ended 31 December 2020. It had net assets of £548,872 and a net cash balance of £539,135.
Following completion, Revera will work alongside Saracen which also operates out of the Scottish capital.
Assetco deputy chairman Peter McKellar and head of distribution Gary Collins will then join the board of Revera.
‘Our commitment to a presence in Scotland’
Campbell Fleming (pictured), chief executive of Assetco, said: “Revera is home to a couple of highly regarded and experienced fund managers in Glen Nimmo and Stephen Grant. The deal demonstrates the appeal of Assetco’s mission and business model.
“The acquisition of Revera is the next step in our plan to establish an active equity platform as part of our overall strategy to build an asset and wealth management business that delivers for investors in the 21st century. Our active equity platform will offer a range of products and investment styles to cater for clients’ evolving needs.
“The acquisition also demonstrates our commitment to a presence in Scotland, where there is a genuine breadth and depth of talent. We expect Edinburgh to be home to a sizeable and growing proportion of Assetco’s investment capabilities, adding new teams and businesses as opportunities arise. I look forward to working with Glen, Stephen and the Revera team, welcoming them to the Assetco stable and developing our active equity platform.”
Revera chief executive Glen Nimmo added: “The entire Revera team is excited to be joining the Assetco stable. We have been impressed by its dynamism since the launch of its strategy, and believe that the next phase of our development will be accelerated by leveraging its distribution capabilities and working alongside like-minded teams in the Edinburgh operation. We are particularly keen to start working alongside our friends of many years, Saracen.
“Most importantly, however, we believe that our clients will benefit as we retain our commitment and focus to our investment offering, within an organisation with greater operational capabilities.”