SVM Asset Management, an Edinburgh-based adviser, has been acquired by AssetCo in a deal worth £10.7m.
AssetCo, which was founded by former Standard Life Aberdeen boss Martin Gilbert, has made a string of successful acquisitions lately, such as the purchase of Revera Asset Management in February and River & Mercantile in April.
Under the conditions of the deal, £1.7m will be paid upfront in cash, while SVM will receive £9m through the issue of convertible loan notes.
SVM manages £586m, including a London Stock Exchange listed fund called SVM UK Emerging.
SVM was founded in 1990 by Margaret Lawson and Colin McLean who are also the majority shareholders of the firm. Ms Lawson will continue in her role as UK investment director at SVM, while Mr McLean will join AssetCo as a director. All 21 employees will maintain their positions.
Mr McLean commented: “When I set up SVM our aim was to leverage quality research and strong fundamentals to underpin our independent thinking and deliver great investor value. I believe that our performance over the years demonstrates that we have been able to achieve this.
“I am pleased that with the backing of AssetCo we will be able to continue to build our focus on, and relationships with, existing clients, creating greater value for them, whilst also broadening our client base and growing assets.”
Meanwhile, Martin Gilbert will join the board of SVM as a director. He said: “We are immensely proud to be building an asset management hub in Edinburgh that, over time, will broaden its client base across the UK and beyond. SVM is a well-regarded fund management firm, with a recognised investment style and a very strong investment track record. Its business model, people and product offering are its key assets, and it is core to AssetCo’s ambitions.
“I have known Colin and Margaret for over 30 years, and I am delighted that both have agreed to remain with SVM. Both have built phenomenal reputations as investment managers over many decades in the industry. The experience and expertise they will bring to AssetCo will be invaluable.”
The deal is subject to FCA approval.
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