City veteran Martin Gilbert’s AssetCo completes £28m deal for investment platform Parmenion
- The deal will see AssetCo take a 30% stake in Parmenion Capital Partners
- Parmenion is the best platform for financial advisers, according to Platforum
- It is the latest in a swathe of deals completed by AssetCo since 2020
City heavyweight Martin Gilbert’s fund and wealth management M&A business AssetCo has completed its £27.8million investment in advisory platform Parmenion Capital Partners.
The deal, which was announced in the summer, sees AssetCo take a 30 per cent stake in the UK’s highest rated investment platform for financial advisers, according to research consultancy Platforum analysis.
AssetCo has paid £20.6million on completion, and will pay a further £3.6million in each of March 2022 and March 2023, depending upon the performance of Parmenion.
Since Gilbert’s appointment as chairman in January, AssetCo’s share price is up roughly 112%
It follows shortly after AssetCo completed the acquisition of Preservation Capital Partners, paying £20.6million.
After doubling its stake in financial services firm River & Mercantile early last year, AssetCo moved to raise capital on London’s AIM market.
It has since completed deals to acquire Saracen Fund Managers, and bought-up a large stake in Rize ETF.
Recent research from analysts at Peel Hunt described the listed asset manager space as a ‘growth sector’, with average annual assets under management growth of 15 per cent and earnings growth of 23 per cent.
Analysts said: ‘For most in the sector, there has been a reduction in the significance of key funds or products, given recent growth and diversification through M&A.
‘As a sector, balance sheets remain robust, suggesting that dividend yields are well supported, and that the average yield of c.5 per cent should be attractive to income investors.’
AssetCo chairman Martin Gilbert co-founded Aberdeen Asset Management in 1983, serving as CEO from 1991 to 2017, and retired from the business in 2020, three years after the fund management stalwart’s merger with Standard Life.
Since Gilbert’s appointment as chairman in January, AssetCo’s share price is up roughly 112 per cent and is trading at 1,700p.
Of the latest deal, recently appointed CEO of AssetCo Campbell Fleming said: ‘Parmenion is at the forefront of the digital transformation taking place within the asset and wealth management industry.
‘Its award-winning IT infrastructure and client focused philosophy have established it as a market leading platform. Parmenion has the client support, people and skill sets to grow and to continue to deliver for advisers and customers.’
‘The acquisition of a 30 per cent equity interest in Parmenion is part of our overall strategy to develop an agile asset and wealth management company that meets the needs of investors in the 21st century.
‘We are looking forward to working with Preservation Capital Partners and the Parmenion team in continuing to build the business and delivering value to investors and AssetCo shareholders.’