Liontrust has agreed to acquire the fund management and model portfolio services businesses of Hawksmoor Investment Services and Hawksmoor Fund Management in a deal worth up to £10m.

The proposed acquisition will add approximately £1.9bn in assets under management and advice to Liontrust. The businesses, owned by Shackleton Advisers Limited, will bring multi-asset funds, fund mandates and model portfolio services (MPS) into Liontrust’s existing investment offering.

Expanding investment solutions for financial advisers

Liontrust will pay an initial £6m in cash for the businesses. The agreement also includes two further contingent payments of up to £2m each. These will fall due 12 and 24 months after completion.

The acquisition will strengthen Liontrust’s position among financial advisers. It will also expand its range of investment solutions, particularly for advisers looking to outsource investment management.

Liontrust said the deal would diversify its client base and create opportunities to develop strategic partnerships. Hawksmoor’s MPS, managed by Richard Philbin, will form part of this expanded offering.

The acquired funds will also introduce different investment objectives from those already available through Liontrust. These include meaningful exposure to investment trusts and listed alternatives.

Investment team to join Liontrust

The deal will bring an experienced investment team into Liontrust, led by Ben Conway, head of fund management at Hawksmoor Fund Management.

Conway and his team will continue managing the acquired funds and mandates within Liontrust’s multi-asset team.

Liontrust chief executive John Ions highlighted the team’s strong relationships with financial advisers and its loyal client base. He also pointed to growing demand among advisers for specialist asset managers to handle investment management.

Liontrust plans to combine Hawksmoor’s existing investment proposition with its own client service, sales and marketing capabilities. The group expects these resources to help develop existing client relationships and attract further business.

A new platform for growth

For Shackleton, the transaction represents an opportunity to place Hawksmoor’s investment businesses within an organisation that can support their future development.

Shackleton chief executive Paul Feeney said the businesses had significant growth potential. He highlighted their talented teams and established proposition for financial advisers.

Feeney added that Shackleton wanted to find a buyer that could provide the right environment and support for the businesses to flourish. The group believes Liontrust offers that opportunity.

What this means for business owners

The transaction highlights how a change in ownership can provide a business with access to a different set of resources and growth opportunities.

For owners considering succession planning, finding a buyer that understands the business and can support its future direction is an important consideration. The right partner may offer more than financial backing. Its existing capabilities, client relationships and strategic priorities can also influence the opportunities available after completion.

At Gunner & Co., we help financial planning and wealth management business owners identify suitable buyers and explore their options. Understanding what different buyers can offer is an important part of preparing for a successful transaction.

If you’re considering succession planning or would like to understand how buyers may view your business, click here to book a free confidential consultation and discuss your options.