Following a £24.4m share placing with investors to help fund the acquisitions, the Jupiter deal went through for a consideration of £43.1m in cash, assuming all the £2.1bn of "in-scope" client assets transfer to Rathbones.
The consideration is subject to a minimum of £32m and a maximum of £53.9m, according to Rathbones, with the deal expected to complete by the end of the third quarter.
Maarten Slendebroek, Jupiter CEO said: "Our private client operations have been part of Jupiter since the group was founded in 1985. However, the group has evolved to become predominantly a mutual fund provider and we believe it is in the best long term interests of our private clients for them to transfer to Rathbones, a specialist wealth management organisation."
'Realigned strategy'
Hot on the heels of the Permira deal bringing Tilney’s regional businesses together with Bestinvest, Deutsche Asset & Wealth Management (DeAWM) will also be selling its remaining (London) branch to Rathbones for £14.3m, a deal expected to complete by the end of the second quarter.
The transaction, which includes its direct business, will see Rathbones’ combined FUM increase from £22bn (end December 2013) to £24.8bn, assuming full value of FUM is transferred.
UK head of wealth management at DeAWM Tom Slocock said: "This sale completes the realignment of DeAWM's UK strategy towards ultra-high and high net-worth clients. We are expanding the range of high-quality solutions we offer our clients and their families from our London office."
At end December, Jupiter's private client AUM was 7% of the group’s £31.7bn, with roughly 30% of that held in Jupiter funds.
Jupiter’s private client team of 28, led by Andrew Clark, is expected to move across to Rathbones as are five investment professionals from Tilney, including head of the team Jeremy Newman.
Further acquisitions
Philip Howell, CEO of Rathbone Brothers added: "The acquisitions of these businesses from Jupiter Asset Management and Tilney Investment Management are an excellent fit. They demonstrate the merits of Rathbones to both clients and investment management teams, as well as our ability to capitalise on earnings-enhancing acquisition opportunities to grow our business.
"We welcome the clients and investment teams of Jupiter and Tilney London and are sure that they will benefit from the stability and infrastructure that Rathbones provides.
"We expect to see more acquisition opportunities in the private client industry in the short to medium term. Raising capital now will give us flexibility to continue to take advantage of similar opportunities as they arise."
