Tavistock has acquired Alpha Beta Partners (ABP), a London and Bath-based asset management company with nearly £3bn ($.76bn) in assets under management.
This move is set to scale Tavistock’s asset management capabilities and aligns with its focus on offering investment solutions to third party advice firms and networks, and retail clients.
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ABP, founded in 2017 by industry veterans Geoff Brooks and Andrew Thompson, specialises in outsourced investment propositions for advice businesses and networks.
ABP managing director Geoff Brooks said: “We are delighted to be joining Tavistock to embark on the next phase of our growth and development, allowing us to continue to both support our existing clients and create new opportunities.
“Our team has been very impressed with everyone we have met at Tavistock and our strategic vision and ambitions are aligned.”
With an EBIT of over £500,000 and turnover exceeding £4m ($5.01m), ABP’s Dynamic Asset Allocation process and modular proposition have earned it high ratings from Defaqto for five consecutive years.
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By GlobalDataThe acquisition terms involve an initial payment of £6m ($7.5m), with the total consideration capped at £18m, dependent on ABP’s performance over the next five years.
Tavistock CEO Brian Raven said: “Alpha Beta Partners is joining us at the ideal time. Their strategic plans and partnerships gel perfectly with ours, particularly in terms of how to improve investor services and value. We look forward to an exciting future together.”
The deal awaits the Financial Conduct Authority’s approval.
This acquisition follows Tavistock’s divestment of its network of appointed representative firms and its registered individuals to Saltus.
With the sale of two subsidiaries to Saltus, Tavistock is set to receive £22m ($27.5m) by 2 December 2024, with total consideration of up to £37.75m ($47.32m).
In 2022, Tavistock purchased LEBC Hummingbird, a financial research company, from LEBC Group.
