Tatton considers DFM acquisitions

Tatton Asset Management is looking to make acquisitions in the discretionary fund management (DFM) market, according to chief executive Paul Hogarth.
Mr Hogarth said: “We want to grow, and so that means we have to invest, and we will do that within the business, we have six sales people now, and we would certainly look to expand that if the ideal person came along.
“But there is scope there to look at M&A activity, we have cash on the balance sheet, though it is not exactly burning a hole in our pockets.
“I think there is potential for a lot of consolidation in the DFM market, and it would be lovely for Tatton to be part of that. We are very aware that the key metric for us is funds under management, and that number is rising.”
Tatton recently gained contracts to provide model portfolio and DFM services to Tenet and Frenkel Topping, which Mr Hogarth also spoke about:
“Tenet must be one of the top four or five IFA distribution businesses in the UK, the management there had been looking at the model portfolio service they offer, and were worried how fit it was for purpose.
“So they had a tender and we won that which we were delighted with. Our task now is to talk to Tenet firms, including those who presently don’t use the MPS service, to see if we can do business with them.
“Frenkel Topping are a business located near to us in Manchester, so we knew them. We were talking to them about various things, and during those chats, it became apparent they could make a saving by getting us to run the discretionary fund management they had.”
Tatton is a listed investment management firm and has assets under management of over £6bn and reported a profit of £6.1m.