Premier Miton Group has acquired equities boutique Tellworth Investments.
The deal brings Tellworth’s £559m of assets under the Premier Miton banner.
The price paid for Tellworth will be based on AUM at completion of the deal. At the current level it will be £5.5m, but it can vary between £3.5m and a maximum of £6m.
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Of this, 75% will go to co-founders Paul Marriage and John Warren, split 25% in cash and 75% in PMI shares. The remaining 25% will go to minority owner BennBridge Hold Co, which is exiting.
An additional £3m may be payable depending on AUM growth between completion and the first anniversary, with the maximum payable if AUM hits £850m.
Tellworth’s core investment team, including Marriage and Warren, will move across to Premier Miton. The boutique offers both long/short and long only strategies to wholesale and institutional clients.
Premier Miton said the acquisition is in line with its inorganic growth strategy of buying complimentary asset management platforms with industry expertise and product diversification.
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The acquisition expands the asset manager’s offering into liquid alternatives with the addition of long/short strategies. Tellworth also brings in strategies with potential for institutional distribution.
Mike O’Shea, Premier Miton CEO, commented: “We continue to explore inorganic opportunities alongside our clear organic growth strategy, and are pleased to announce this new acquisition, which we believe is complementary to our existing business and further strengthens our longer-term growth plans.
“We will now be able to offer our clients access to an even broader range of UK equity investment solutions, bringing the specific proven experience and expertise of Paul Marriage and John Warren, to work alongside our own specialist UK investment team; the team have proven track records of delivering good investment outcomes for investors.”
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