Caledonia Investments has agreed to acquire a 94% stake in London-based wealth management firm Seven Investment Management (7IM) in a deal valuing the firm at £100m.

Caledonia, an investment trust with around £1.6 billion of assets, will invest £77m in cash to acquire 7IM from its current owners Allied Zurich and Aegon UK.

The management team at 7IM will subscribe £5m for the remaining equity while the balance of the purchase costs will be provided by £25m of bank debt, to be underwritten by Caledonia.

Following the acquisition, 7IM – which has about £9.5bn in assets under management -will become the trust’s fourth largest holding, making up 4.7% of its portfolio.

7IM CEO Tom Sheridan said: "We are delighted to be partnering with Caledonia in the next phase of 7IM’s development. Their investment philosophy and culture, as well as their attitude to longer term investment, are perfectly aligned with our own.

"We have many exciting developments and ideas for our clients, 7IM and our industry, and having Caledonia as a partner will greatly help us in achieving some very exciting goals."