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August 16, 2022

Tatton Asset Management concludes buyout of 50% stake in 8AM Global

UK-based Tatton Asset Management (TAM) has closed a previously announced deal to buy 50% of share capital in investment manager 8AM Global for £7m.

The acquisition, which was first disclosed in April this year, was completed after TAM received regulatory approval for the deal. It includes an option for TAM to purchase an additional 50% share in 8AM Global over a period of time.

8AM Global mainly provides risk-profiled model portfolios (MPS) and several multi-manager funds.

With the new deal, TAM aims to boost its current portfolios as well as help financial advisers with affordable investment management solutions.

TAM also seeks to provide independent financial advisor (IFA) customers with improved risk profiled investments using 8AM Global’s knowledge and approach in the field.

Following the conclusion of the deal, 8AM Global’s assets under management (AUM) is set to reach around £8bn. The deal is also expected to create £7m in adjusted operating profit in the first full year of proprietorship.

As part of the deal, TAM is set to issue its shares to pay for half of the deal, with plans to issue 877,737 new ordinary shares at a value of £20 each.

The company also plans to issue the consideration shares at £3.9891, which represents a 5% concession on the average volume weighted average share price for five days concluded 11 August 2022.

Tatton Asset Management CEO Paul Hogarth said: “I am delighted to announce the completion of the acquisition of 50% of the share capital of 8AM Global, an ambitious and growing DFM MPS business.

“The business complements TAM’s existing core MPS offering which has continued to see strong net inflows over the first four months of this financial year.

“8AM brings with it an experienced and motivated management team who are well known to us and culturally aligned to the values of the Group.”

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