The takeover will add some £30m in funds under management to Thesis’ books, with 80 clients invited to switch investments to the larger, combined firm.
The deal forms part of the Thesis’ “expansive attitude” following its own management buyout earlier this year.
The firm said it is eyeing further opportunities with small DFM firms as the pressure of regulations such as Mifid II and GDPR bite from next year.
The deal with Bath-based Cambridge Fund Managers, owned by Henry Cottrell, will complete at the end of December this year.
Lawrence Cook, director of marketing and business development at Thesis, said: “Henry has built a fantastic company, but understands the need to implement a successful succession strategy to ensure his clients have a positive experience. We are delighted to work with him in achieving this.
“We are keen to explore further opportunities where smaller DFMs are considering their options, particularly as the regulatory burden increases with the likes of Mifid II and GDPR. While the regulation is sensible, it is difficult for smaller organisations to meet the impending responsibilities and obligations, and this is where we want to help firms and their clients.”
Cottrell, who has owned Cambridge for more than 25 years, said it was “the right time” to look for the company’s next step.
“It is more important than ever to get succession right for clients and we believe we have found the best buyer to provide them with a seamless transition and excellent service thereafter,” he said.
