Martin Gilbert’s AssetCo sees profits quadruple

Martin Gilbert’s AssetCo saw its pre-tax annual profit quadruple over the past year, and the takeover vehicle has now grown to around £9.6billion of assets under management.

Pre-tax profit surged from £3.4million to £16.1million over the past year, and the group’s share price has jumped from around £4 a share to £17 a share during the period.     

The firm’s bumper bottom line has emerged after AssetCo snapped up equity stakes in four businesses over the past year, namely Rise ETF, Parmenion, Saracen Fund Managers and River and Mercantile. The group is on a mission to create a new wealth and asset management firm. 

Campbell Fleming, chief executive of AssetCo, said: ‘The asset and wealth management industry is going through a period of significant change including technological advances, evolving investor needs and habits. 

‘To address these structural shifts the businesses we have invested in encompass four key areas – active management in both public and private markets, high growth thematic investing, ESG and digital solutions. 

‘Saracen Fund Managers, Rize ETF and Parmenion are well placed to take advantage of the changing landscape to meet client needs.

‘The potential acquisition of River and Mercantile, subject to shareholder and regulatory approval, will augment our strategy and will become a core part of our equity platform and the cornerstone of our private markets offering as well as increasing our AuM to over £12billion.

‘I am confident that AssetCo has established the foundations to continue to grow organically and through selective acquisitions and most importantly to deliver for investors.’

The group’s capital almost doubled over the past year, rising to £56.1million, up from £32.3million, including a tender offer that returned £27million to shareholders. 

Last month, Mr Gilbert confirmed a deal to take control of River and Mercantile Group.

AssetCo, the vehicle headed by Mr Gilbert, struck a deal to buy R&M, subject to shareholder approval.

As part of the deal, R&M shareholders will be entitled to receive 0.073 AssetCo new shares for each R&M shares they hold.

Mr Gilbert said last month: ‘The asset and wealth management industry is contending with significant structural shifts, including technological advances, a reorientation of investing and evolving client needs.

‘We are committed to building an agile asset and wealth manager that is fit for purpose in the 21st century. The acquisition of RMG is a core part of this strategy; it strengthens our active equity capability and importantly provides a foundation stone to building a private markets business given its infrastructure investment team.’