Mattioli Woods buys 49% of Edinburgh’s Amati

David Stevenson, Paul Jourdan and Douglas Lawson of Amati

Leicester-based wealth management firm Mattioli Woods said it acquired 49% of Edinburgh-based fund manager Amati Global Investors Limited from Amati Global Partners LLP for £3.33 million.  

Mattioli Woods also secured an option to acquire the remaining 51% of Amati in the two years commencing February 6, 2019 for a mixture of cash and Mattioli Woods’ ordinary shares. 

If Mattioli Woods does not exercise the option, Amati has an option to buy back Mattioli Woods’ shareholding for the original consideration paid.  

AIM-listed Mattioli Woods has a stock market value of around £200 million.

Amati was founded in 2010 by Paul Jourdan and Douglas Lawson following the management buyout of Noble Fund Managers Limited and is based in Edinburgh’s Charlotte Square.

Amati focuses on small and mid-sized companies and currently manages £120 million of funds. 

There will be no change to the day-to-day management of the Amati funds and portfolios, which will continue to be run by Paul Jourdan, Douglas Lawson and David Stevenson.

Mattioli Woods said that in the year ended December 31, 2016, Amati had profit before taxation of £0.49 million on revenues of £1.76 million. 

The deal comprises £1.59 million of cash and 224,427 new ordinary shares of Mattioli Woods, valued at £1.74 million. 

Mattioli Woods CEO Ian Mattioli said: “Our investment in Amati represents an exciting extension to our existing asset management business and is another important step forward for Mattioli Woods as we continue to expand our operations.

“Amati is a great fit culturally and strategically. 

“There are few specialist UK fund managers with such a long and stable heritage, utilising the combined experience of an investment team with over 50 years’ knowledge of UK smaller companies.  

“The team’s performance has been recognised in a number of awards and ratings. 

“I believe this investment will significantly enhance the group’s fund management expertise.”  

Amati CEO Paul Jourdan said: “As AIM investors we have known and admired Mattioli Woods for many years. 

“As this transaction has evolved over the past year we have realised not only that our businesses are highly complementary, but that we share similar values and business culture. 

“We are very much looking forwards to working closely with them, and believe that as a result we will be able to take our specialist investment products to a much wider audience.” 

The deal announcement came as Mattioli Woods — also specialists in employee benefits — unveiled its interim results for the six months ended November 30, 2016.

They showed revenues up more than 22% at £24.3 million and total client assets of £7.56 billion.