Martin Gilbert’s AssetCo has struck a deal to buy Edinburgh-based asset manager SVM for £10.7million.
The move is the latest in AssetCo’s strategy to create the next major UK player in wealth and asset management.
It follows the acquisition of asset manager Revera for £2.8million in February and equity stakes in four businesses over the past year, namely Rise ETF, Parmenion, Saracen Fund Managers and River and Mercantile.
Edinburgh-based SVM is an independent fund management business founded in 1990
SVM is an independent fund management business that was founded in 1990 by Colin McLean and Margaret Lawson, who are significant majority owners, along with a family trust.
SVM currently has around £586million of assets under management, including five open-end funds: UK Growth, UK Opportunities, Continental Europe, All Europe SRI and World Equity.
The firm also manages SVM UK Emerging Fund, a £6.8million investment trust listed on the London Stock Exchange.
Last year, the business made a turnover of £4.3million and pre-tax profit of £2million, with net assets of £14 million at year end.
Gilbert said the deal was a key plank in building a ‘significant asset management hub in Edinburgh’.
McLean, the current managing director and CIO of SVM will become a director of AssetCo’s Scottish business.
Lawson, who is UK investment director at SVM, will continue in her role managing equity portfolios.
Neil Veitch, global and UK investment director, and Hugh Cuthbert, European investment manager, will also continue with their role.
SVM’s existing 21 employees will continue to be employed by the group.
City veteran Gilbert 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.’
Following the acquisition, AssetCo will have approximately £3.5billion of AuM in listed equity fund strategies across its various businesses.
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