British wealth manager Brooks Macdonald has lost a £244m ($318m) investment management contract with Grosvenor Wealth Management.

The news was revealed by Brooks Macdonald in a trading update.

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The agreement was ended as the two parties failed to strike an agreement for Brooks Macdonald’s takeover of Grosvenor.

“This followed extensive discussions between Brooks Macdonald and Grosvenor over the purchase of the sponsorship company attached to the Grosvenor funds, where we were unable to reach a satisfactory commercial arrangement that met our stated acquisition criteria,” the update stated.

Brooks Macdonald further noted that clients pulled out £506m in the second half of 2019. The firm’s discretionary fund management service reported outflows of £235m.

However, FUM remained flat at £13.1bn between the end of June and December 2019. This was driven by performance gains of £448m.

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Brooks Macdonald CEO Caroline Connellan said: “It has been a positive six months for Brooks Macdonald.

“Over the first half of our financial year we maintained FUM levels, delivered strong investment performance, and made good progress in our International business.”

Brooks Macdonald serves private HNWIs, institutions, charities, and trusts as well as pension funds.

It has operations in London, East Anglia, Hampshire, Leamington Spa, Leeds, Manchester, Taunton, Tunbridge Wells, Wales, Scotland, Jersey, and Guernsey.

Last November, the firm announced the purchase of Cornelian Asset Managers Group – an Edinburgh-based wealth manager.