New discretionary fund management firm Titan Wealth Holdings has acquired Tavistock Wealth for up to Â£ 40million ($ 56.6million, â¬ 46.3million) in cash, along with an additional price over 10 years.
Tavistock Wealth is a multi-asset manager with over Â£ 1 billion in funds under management.
The merger and acquisition deal is part of a larger 10-year partnership between the two companies, which will see Tavistock act as Titan’s distribution partner, as well as help grow the UK company both organically and through acquisitions.
Titan will pay Â£ 20million upon closing and an additional Â£ 20million in equal annual installments over the next three years, linked to Tavistock’s income. The additional amount will be paid over a ten-year period and is calculated as 50% of future net income on any increase in FuM within the Acumen Ucits funds of Tavistock Wealth.
As part of the agreement, âa new company within the Tavistock Investments group, Tavistock Asset Management (Tam), will continue to market the group’s centralized investment proposal which will include both the Acumen Ucits funds and the The company’s model portfolio (MPS), âthe firm said.
Tam will also retain Titan as the investment manager for the MPS.
The announcement comes just months after Jersey-based fund manager Team attempted to acquire Tavistock Investments, but the wealth management firm rejected the offer as it said the offer “significantly undervalues the company “.
James Kaberry, Executive Chairman of Titan, said: âWe are delighted to partner with Tavistock and look forward to a prosperous future together. We have been impressed by the management team of Tavistock, the company they have built and the exceptional investment funds managed by Tavistock Wealth.
Brian Raven, Managing Director of Tavistock, said: âThis is a tremendous opportunity for both companies. Although Tavistock Wealth is part of Titan, we will continue to work closely with our high performing investment team. The partnership with Titan confirms our business strategy and will allow us to accelerate the growth of our business and deliver maximum value to our shareholders. “
The merger and acquisition transaction is part of Titan’s larger plan to become a full-scale provider of execution, settlement, custody and administration services to the asset and wealth management industry.
As a result, it is simultaneously attempting to acquire Global Prime Partners, a provider of platform services to institutional clients and fund managers with Â£ 2 billion in assets under administration.
Titan Wealth Holdings was incorporated in March 2020, according to the UK Companies House, and is backed by investment firms Ares Management and Hambleden Capital, as well as private equity firm Maven Capital Partners.