London & Capital (L&C), an independently-owned wealth manager, has divested its adviser solutions business to Momentum, the UK arm of South African financial services firm MMI Holdings.
The agreement will see L&C’s Adviser Solutions unit sit within the Momentum Global Investment Management business, which designs and manages outcome based, risk profiled investment solutions for clients in the UK, Far and Middle East and South Africa.
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Following the deal, Momentum will assume the day-to-day responsibility for the investment management of the 15 model portfolios under a sub-investment management agreement.
Momentum will later take over the full responsibility for the portfolios on 1 July 2016.
This sale is part of L&C’s long-term strategic plan to simplify the business and maximise the significant opportunity in its core business of private client and institutional divisions.
This transaction will allow London & Capital to focus all its resources on these divisions to drive the business towards its next stage of growth.
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By GlobalDataThe acquisition comes as Momentum seeks to grow its presence in the UK retail market.
London & Capital chief operating officer Guy McGlashan said: "It was important to find a partner who shared our ideals and investment philosophy to provide continuity for our IFA clients. The continuity will also be aided by our Adviser Solutions team transferring to Momentum, thus minimising disruption for our IFA relationships and their clients."
Momentum UK CEO Ferdi van Heerden said: "This acquisition presents us with a great foundation on which to accelerate our growth as an investment solutions provider to the UK adviser market.
"With the addition of a mature DFM solution to complement our unitised Factor Series fund range, we now have a proposition that can cater for a wide range of IFA’s customer needs."
