Titan Wealth has agreed to purchase Tavistock Wealth, Tavistock’s multi-asset manager with over £1bn of funds under management, for a consideration of £40m.
This is part of a 10-year strategic partnership between Tavistock Investments and Titan Wealth Holdings.
Furthermore, Titan is also looking into acquiring Global Prime Partners Limited (GPP).
The principal terms of the partnership including the sale of Tavistock Wealth are:
- Tavistock will act as Titan’s retail distribution partner;
- Tavistock can accelerate growth of its wealth management business;
- £20m will be paid on completion with a further £20m paid in equal annual instalments over the following three years;
- Tavistock will receive additional payments over a ten-year period equivalent in value to 50% of future net income on any increased funds under management with the ACUMEN UCITS funds, and
- A new company, Tavistock Asset Management, will continue to market the group’s centralised investment proposition.
John Leiper, Tavistock’s chief investment officer, will become part of Titan and continue to work closely with Tavistock and its advisers.
To avoid doubt, Tavistock will, on completion, continue to be classified as an operating company and not as an AIM cash shell.
The firm will also send a circular to shareholders to seek their formal approval to proceed with this transaction.
James Kaberry, Titan’s executive chairman, said: “We are excited to partner with Tavistock and look forward to a successful future together. We have been impressed by Tavistock’s leadership team, the business that they have developed, and the outstanding investment funds run by Tavistock Wealth.”
Brian Raven, Tavistock’s chief executive, added: “This is a great opportunity for both companies. Whilst Tavistock Wealth is becoming part of Titan, we will still be working closely with our highly successful investment team. The partnership with Titan endorses our corporate strategy and will enable us to accelerate the growth of our business and deliver maximum value to our shareholders.”