Rathbones tops up war-chest
Wealth management outfit Rathbone Brothers is on the acquisition trail, snapping up the UK private client investment management business of Taylor Young Investment Management (TYIM).
Wealth management outfit Rathbone Brothers is on the acquisition trail, snapping up the UK private client investment management business of Taylor Young Investment Management (TYIM).
TYIM's management team will soon be wearing Rathbone colours after the latter agreed to pay up to £10m in cash for the business, although the consideration could rise to £15m by November 2014 depending on the performance of funds currently being managed by TYIM. Rathbones expects the transaction to be earnings neutral in 2013 prior to amortisation, and should start contributing to earnings from 2014 onwards.
As at November 2nd, TYIM had £337m of funds under management (FUM), and Rathbones has calculated that adding those funds to its own pot would increase FUM by 2.0% to £17.69bn.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Andy Pomfret, Chief Executive of Rathbone Brothers, said management expects to see more acquisition opportunities in the private client industry in the next few years, which explains why the company is raising around £24.2m (gross) through a placing of 2m shares. The targeted fund raising amount is equivalent to around 4.3% of Rathbones Brothers' market capitalisation, as at November 6th.
Canaccord Genuity has been appointed as sole book-runner for the placing, which means it will be in charge of haggling with institutional investors over the price of the share placing, which is not being underwritten.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Higher rates are disappearing – should you fix your savings?
Fixed savings rates have dropped to their lowest levels in over a year. Should you fix your savings now ahead of a potential base rate cut in November?
By Katie Williams Published
-
Nine million people fall victim to financial scams, says Citizens Advice
The charity says that around one in five people across the UK have been caught out by a finance scam in the past year - here is how to protect your money
By Chris Newlands Published