CALEDONIA Investments, a self managed investment trust firm, yesterday announced that it will be acquiring up to 94 per cent of Seven Investment Management (7IM) by investing £77m in cash.
London-listed 7IM’s management team will subscribe £5m for the remaining equity, with the balance to be provided by £25m of bank debt.
The deal, instigated by Caledonia and which requires approval from the Financial Conduct Authority, values 7IM at £100m.
The private investment group has a successful history in fund-management and as at 31 December 2014 its reported profit before tax was £8.6m and gross assets were £42.9m
Tom Sheridan, 7IM’s chief executive, yesterday said that he is pleased with the Caledonia partnership.
Sheridan described the Caledonia culture as “perfectly aligned” with that of 7IM.