Martin Gilbert’s fast-growing investment firm AssetCo plc has reached agreement to acquire Edinburgh-based Revera Asset Management Limited for about £2.8 million in shares and cash.
The deal will involve the issue of 54,639 new ordinary AssetCo shares and £1.9 million in cash.
Revera will work alongside Saracen Fund Managers Limited, another Edinburgh based asset manager that was acquired by AssetCo in July 2021.
AssetCo said its expects Edinburgh to be home to a “sizeable and growing proportion” of its investment capabilities “adding new teams and businesses as opportunities arise.”
AssetCo chairman Gilbert is the former co-CEO of Standard Life Aberdeen (SLA), now called abrdn.
“The acquisition is conditional on, inter alia, approval by the FCA to the change in controller and the admission of the consideration shares to trading on AIM, which is expected to occur by the end of May 2022,” said AssetCo.
Revera is an independent FCA regulated fund management business based in Rutland Square, Edinburgh, that was founded in 2003.
Revera has two funds, operating on the Smith & Williamson Fund Administration Limited platform — the £108 million S&W Revera UK Dynamic Fund and the £10 million Skye Trust.
AssetCo’s deputy chairman Peter McKellar and head of distribution Gary Collins will join the board of Revera on completion.
“The board of the company believes that there exist significant opportunities to enhance the distribution and appeal of Revera’s principal fund and to widen the funds offered by Revera and Saracen to include adjacencies,” said AssetCo.
AssetCo CEO Campbell Fleming said: “Revera is home to a couple of highly regarded and experienced fund managers in Glen Nimmo and Stephen Grant.
“The deal demonstrates the appeal of AssetCo’s mission and business model.
“The acquisition of Revera is the next step in our plan to establish an active equity platform as part of our overall strategy to build an asset and wealth management business that delivers for investors in the 21st century.
“Our active equity platform will offer a range of products and investment styles to cater for clients’ evolving needs.
“The acquisition also demonstrates our commitment to a presence in Scotland, where there is a genuine breadth and depth of talent.
“We expect Edinburgh to be home to a sizeable and growing proportion of AssetCo’s investment capabilities, adding new teams and businesses as opportunities arise.
“I look forward to working with Glen, Stephen and the Revera team, welcoming them to the AssetCo stable and developing our active equity platform.”
Revera CEO Glen Nimmo said: “The entire Revera team is excited to be joining the AssetCo stable.
“We have been impressed by its dynamism since the launch of its strategy, and believe that the next phase of our development will be accelerated by leveraging its distribution capabilities and working alongside like-minded teams in the Edinburgh operation.
“We are particularly keen to start working alongside our friends of many years, Saracen.
“Most importantly, however, we believe that our clients will benefit as we retain our commitment and focus to our investment offering, within an organisation with greater operational capabilities.”