AssetCo has signed an agreement to buy Edinburgh-based fund management business Revera Asset Management for £2.8m.
The deal price will be funded through £1.9m in cash and the issue of 54,639 new ordinary shares of 10 pence each.
Founded in 2003, Revera has two funds, namely, S&W Revera UK Dynamic Fund and the Skye Trust, with assets under management (AuM) of approximately £108m and £10m, respectively.
The firm has four full-time and one part-time employees.
AssetCo CEO Campbell Fleming noted that the deal is part of the company’s plan to set up an active equity platform that will offer a range of products and investment styles to serve clients’ evolving needs.
Fleming said: “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.”
Following the transaction, Revera will work alongside Edinburgh-based Saracen Fund Managers, which was acquired by AssetCo in July 2021.
AssetCo deputy chairman Peter McKellar and head of distribution Gary Collins will join the board of Revera as part of the deal.
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.”