Specialist asset manager Gresham House has agreed to acquire FIM Services, an alternative investment fund manager specialising in UK real assets.
FIM managed around £893m in assets at the end of December 2017 and currently employs 25 staff based in Oxford. The firm focuses on sustainable forestry and renewable energy investments.
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FIM managing director Richard Crosbie Dawson added: “We have a complementary client base to Gresham House and our combined expertise and experience will facilitate new investment opportunities.”
Gresham House will initially pay £21m, including £11.2m in cash and £9.8m in loan notes, as deal consideration. It will also pay a further £4m based on the achievement of certain performance targets.
The merged entity will have more than £1.5bn in assets under management across forestry, new energy, UK housing and infrastructure, private assets as well as strategic public equity.
In order to fund the deal, Gresham House plans to raise £15m in a new share placing with each share valued at 410 pence.
Gresham House CEO Anthony Dalwood said: “The acquisition of FIM will allow Gresham House to achieve scale and establish a market leading position as an investor in UK commercial forestry whilst also enhancing the Gresham House New Energy division.”
In a similar deal last year, Gresham House purchased the asset management unit of Hazel Capital, a UK-based asset manager focussed on new energy infrastructure.
