AssetCo acquires fund supervisor SVM for £10.7m
Martin Gilbert’s AssetCo is to amass Edinburgh-based fund supervisor SVM Asset Administration for a complete of £10.7m.
The deal is topic to approval by the FCA.
AssetCo stated it expects the acquisition to finish by the top of September.
SVM is a fund administration enterprise with round £586m in belongings below administration together with 5 open-end funds: UK Progress, UK Alternatives, Continental Europe, All Europe SRI and World Fairness.
SVM additionally manages SVM UK Rising Fund plc, a £6.8m funding belief listed on the London Inventory Change.
It generated turnover of £4.3m and revenue earlier than tax of £2m for the yr ended 31 December and had web belongings of £14m.
SVM was based by Colin McLean and Margaret Lawson in 1990. Each, along with a household belief, are the numerous majority house owners of the fund supervisor.
Mr McLean, who's managing director and CIO of SVM, will grow to be a director of AssetCo’s Scottish arm on completion of the acquisition.
Ms Lawson, UK funding director at SVM, will proceed in her present position managing UK fairness portfolios, as will Neil Veitch, international and UK funding director, and Hugh Cuthbert, European funding supervisor.
Mr Gilbert, founding father of Aberdeen Asset Administration and chairman of AssetCo, will be a part of the board of SVM on completion of the acquisition.
SVM’s current 21 staff will proceed to be employed by SVM.
Mr Gilbert stated: “We're immensely proud to be constructing an asset administration hub in Edinburgh that, over time, will broaden its consumer base throughout the UK and past. SVM is a well-regarded fund administration agency, with a recognised funding type and a really sturdy funding monitor document. Its enterprise mannequin, individuals and product providing are its key belongings, and it's core to AssetCo’s ambitions.
“I've identified Colin and Margaret for over 30 years, and I'm delighted that each have agreed to stay with SVM. Each have constructed phenomenal reputations as funding managers over many many years within the business. The expertise and experience they are going to carry to AssetCo shall be invaluable.
“I'm additionally heartened that fund managers of the calibre of Hugh and Neil have dedicated to the enterprise, as they've necessary roles to play. We're wanting ahead to working with the 4 of them, and the remainder of the SVM group, as we develop a enterprise to satisfy the evolving long-term monetary wants of traders.”
AssetCo can pay a complete consideration of round £10.7m. The cost shall be cut up into a problem of as much as £9m 1% fastened charge unsecured convertible mortgage notes in AssetCo plus round £1.7m in money. The figures are topic to stability sheet changes and to be paid on completion of the acquisition.
Holders of the mortgage notes can convert them into totally paid extraordinary shares of 10p every in AssetCo at an efficient concern worth of £14.50. Any unconverted mortgage notes shall be repaid on 31 December 2023.
AssetCo stated it believes that there are vital alternatives to boost the distribution and advertising and marketing of SVM’s current funds.
The acquisitive asset and wealth administration agency added that the SVM funds will even complement the present listed fairness fund methods provided by AssetCo’s numerous companies, most notably these provided by different current acquisition River and Mercantile Asset Administration.
Following completion AssetCo can have roughly £3.5bn of AuM in listed fairness fund methods throughout its numerous companies.