Fund management veteran Martin Gilbert-backed firm AssetCo has doubled its holding in asset management company River and Mercantile Group (R&M).
The firm has acquired 2.5 million shares in R&M at 228p, increasing its total stake in the business to 5 million shares. This accounts for 5.85% of the issued share capital of R&M.
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AssetCo will pay £5.7m in cash for the transaction.
The move follows the company’s business strategy to develop an asset and wealth management business.
“As a result, this will be a fundamental change of business and the company will effect a readmission of its shares pursuant to AIM Rule 14,” AssetCo said.
“The board is committed to completing the readmission process within three months and will provide further updates to shareholders in due course,” the firm further stated.
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By GlobalDataAssetCo made its initial investment in R&M last month, after Aberdeen Asset Management co-founder Martin Gilbert led consortium purchased a near-30% stake in AssetCo.
At the time, the company had said that it would shift its strategy to pursue strategic investment opportunities in the financial services segment.
Recent M&A activities in the UK
Last week, HPS Investment Partners agreed to invest in the UK wealth management business of Canada-based Canaccord Genuity Group.
Last month, American private equity firm Flexpoint Ford entered into an agreement with the independent directors of British wealth consolidator AFH Financial Group on the terms of a £224.5m ($307m) offer to acquire the latter.
The same month, Focus Financial Partners partner firm Connectus Wealth Advisers expanded into the UK with the acquisition of Watterson Financial Planning.
Last December, private equity firm AnaCap Financial Partners agreed to purchase Novia Financial, which is Britain’s third-largest independent investment and wrap platform by AuM.
