Ambitious wealth management company, AssetCo, headed by industry veteran Martin Gilbert, is to buy SVM Asset Management Limited for GBP10.7 million.
The firm writes that SVM has a 30-year track record of solid and steady performance and client service and a CEO in Colin McLean who has been a leading industry figure for several decades.
AssetCo believes that the acquisition of SVM will enhance its growing Scottish, as well as wider UK, brand and significantly bolster the strength of its Scottish board with the addition of Colin McLean, Garry Fyfe (Finance Director) and Jonathan Hewitt (Non-Executive Director).
AssetCo believes that, given the strong investment performance delivered by SVM’s fund managers, there are significant opportunities to enhance the distribution and marketing of SVM’s existing funds and, over time, to broaden the product offering. The SVM funds will also complement the existing listed equity fund strategies offered by AssetCo’s various businesses, most notably those offered by River and Mercantile Asset Management.
Following completion AssetCo will have approximately GBP3.5 billion of AuM in listed equity fund strategies across its various businesses. SVM and AssetCo have strong distribution capabilities as well as strong organic growth and the combination of the two, plus the wider product offerings, should result in a much stronger and broader combined entity.
SVM is to spearhead AssetCo’s plans to have a significant asset management hub in Edinburgh, which already includes Saracen Fund Managers and Revera Asset Management (subject to regulatory approval). In aggregate the three businesses have over GBP800 million of AuM.
The firm writes that all three businesses will retain their distinct active equity investment philosophies and client profiles, however, the intention is that they will share compliance, operational, distribution and marketing resources with River and Mercantile Asset Management.
Colin McLean, Managing Director of SVM, says: “When I set up SVM our aim was to leverage quality research and strong fundamentals to underpin our independent thinking and deliver great investor value. I believe that our performance over the years demonstrates that we have been able to achieve this. I am pleased that with the backing of AssetCo we will be able to continue to build our focus on, and relationships with, existing clients, creating greater value for them, whilst also broadening our client base and growing assets.”
Martin Gilbert, Chairman of AssetCo, says: “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. The experience and expertise they will bring to AssetCo will be invaluable. I am also heartened that fund managers of the calibre of Hugh and Neil have committed to the business, as they have important roles to play. We are looking forward to working with the four of them, and the rest of the SVM team, as we develop a business to meet the evolving long-term financial needs of investors.”