UK-based Tatton Asset Management (Tam) has acquired a 50% stake in investment manager and model portfolio service (MPS) provider 8AM Global for a consideration of £7m ($9.2m, €8.4m).
A spokesperson for Tam confirmed to International Adviser that the other 50% stake is being held by the management of 8AM Global.
In a trading update on 20 April 2022, the asset manager said that 8AM Global’s model portfolios and funds will “complement Tam’s existing position, further demonstrating our commitment to supporting financial advisers in delivering low-cost investment management and enhancing IFA client outcomes”.
On completion, Tam expects the deal to add around £800m in assets under management to the group’s existing £11.3bn.
The total consideration of £7m comprises 50% (£3.5m) of initial consideration payable through the issue of new shares, and the remainder payable in equal cash instalments against financial performance targets at the end of the first and second year after completion.
Tam will also have the option to acquire the other 50% of 8AM Global’s share capital following the deferred consideration period.
Paul Hogarth, chief executive of Tam, said: “I am delighted to announce the proposed acquisition of 50% of the share capital of 8AM Global Limited, an ambitious and growing DFM MPS business.
“The business complements our existing offering and brings with it an experienced and motivated management team who are well known to us and culturally aligned to the values of the group. We are very much looking forward to working with them.
“Post completion, this will be the second acquisition in less than a year for the group, demonstrating that we are executing on our three-year ‘roadmap to growth’ strategy. With a three-year target of £6bn of growth in AuM, at the end of the first year we remain on target to achieve this.
“This year we have grown organically by £1.7bn and acquisitions to date have contributed a further £600m, a total contribution of £2.3bn towards the target and on completion 8AM will further enhance this number.”