Miton Group has agreed to sell its Liverpool-based funds business, Miton Capital Partners to Seneca Investment Managers for £6.4 million.

Under the deal, Seneca will pay £3.5 million up front for the Liverpool funds, with a further amount based on net assets (estimated to be £1.9 million) in addition to a potential deferred payment of up to £1million payable either three months after the deal’s completion or by 30 June 2014.

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The sale is subject to FCA approval and is expected to be completed by the start of second quarter this year.

Also, Miton’s distribution director Graham Hooper will quit the business on 31 March.

Upon completion of the deal, the business will be renamed as Seneca Investment Managers and the fund management teams will move to Seneca and will report to new chief executive Stuart Eaton.

The funds will be rebranded under the Senena Investment Managers name.

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The sale was in response to market trends, which have evolved beyond the credit boom and will shed £450 million from Miton’s assets under management.

The Liverpool fund management unit currently manages the £140 million CF Miton Distribution, the £161.4 million CF Miton Diversified Growth, and the £56.9 million Midas Income & Growth Trust funds.

Ian Dighé, executive chairman of Miton Group, said: "The clients investing in our Liverpool funds have enjoyed improved performance over recent years, and we believe the improved trend will be sustained following the transaction with Seneca.

"Miton’s funds under management, excluding the Liverpool business, have almost doubled in the last two years. The accelerating momentum in the group gives the board greater confidence for improved results in the current year," he added.

In 2013, the funds managed from Liverpool generated gross revenue of £4.6 million and controlled £466 million in assets under management.