Newly formed discretionary fund management business Titan Wealth Holdings has acquired Tavistock Wealth for a consideration of up to £40m ($56.6m, €46.3m) in cash, together with a 10-year earn out.
Tavistock Wealth is a multi-asset manager with over £1bn of funds under management.
The M&A deal is part of a wider 10-year partnership between the two firms, which will see Tavistock act as Titan’s distribution partner, as well as help with the UK firm’s growth both organically and through acquisitions.
Titan will pay £20m on completion of the deal and a further £20m in equal annual instalments over the following three years, linked to Tavistock’s revenues. The additional sum will be given over a ten-year period and is calculated as 50% of future net income on any increased FuM within Tavistock Wealth’s Acumen Ucits funds.
As part of the agreement, “a new company within the Tavistock Investments Group, Tavistock Asset Management (Tam), will continue to market the group’s centralised investment proposition which will include both the Acumen Ucits funds and the company’s model portfolio service (MPS)”, the firm said.
Tam will also keep Titan as investment manager for the MPS.
The announcement comes just months after Jersey-based fund manager Team tried to acquire Tavistock Investments, but the wealth management firm rejected the bid as it said the offer “significantly undervalued the business”.
Future opportunities
James Kaberry, Titan’s executive chairman, said: “We are excited to partner with Tavistock and look forward to a successful future together. We have been impressed by Tavistock’s leadership team, the business that they have developed, and the outstanding investment funds run by Tavistock Wealth.”
Brian Raven, Tavistock’s chief executive, said: “This is a great opportunity for both companies. Whilst Tavistock Wealth is becoming part of Titan, we will still be working closely with our highly successful investment team. The partnership with Titan endorses our corporate strategy and will enable us to accelerate the growth of our business and deliver maximum value to our shareholders.”
The M&A deal is part of Titan’s wider plan to become a large-scale provider of execution, settlement, custody and administration services to the asset and wealth management sector.
As a result, it is simultaneously trying to acquire Global Prime Partners, a provider of platform services to institutional clients and fund managers with £2bn in assets under administration.
Titan Wealth Holdings was incorporated in March 2020, according to UK register Companies House, and is backed by investment firms Ares Management and Hambleden Capital, and by private equity business Maven Capital Partners.
