RATHBONE Brothers, one of the oldest wealth managers in the City, yesterday snapped up boutique equity manager Taylor Young Investment Management (TYIM) and raised £24.7m from investors to give it additional firepower for more acquisitions.
FTSE 250 listed Rathbones, which traces its trading roots back to 1742, will pay up to £15m for the Cannon Street-based firm in a deal which will add £337m to Rathbone’s asset base, a boost of two per cent.
TYIM’s investment team, led by Peter Thomson, will join Rathbones – which is headquartered in Curzon Street, Mayfair – as part of the deal.
In a sign of the sector’s fluid M&A activity, the firm yesterday also placed £24.7m of shares with new and existing investors to fund a warchest for future buys.
Rathbone Brothers chief executive Andy Pomfret said: “We expect to see more acquisition opportunities in the private client industry in the next few years.
“Raising capital now will give us the flexibility to take advantage of these opportunities as they arise and help us provide more fully-secured loans to our clients.”
The firm bought the asset management arm of AIB Jersey at the start of October, adding £43m of funds.
The deal with TYIM will see the firm pay £10m in cash, with £2.6m paid up front and the rest in deferred payments based on the value of funds transferring to Rathbones. The total is capped at £15m.
ADVISERS CANACCORD GENUITY
Leading the placing of nearly £25m of shares with investors was Martin Green and Mike Cuthbert, from brokerage firm Canaccord Genuity, who acted as sole bookrunner on the deal.
Green is managing director of corporate finance in the financial sector at Canaccord Genuity.
He joined the firm around a year ago from Bank of America Merrill Lynch having previously worked at Cenkos and Smith New Court. Green previously focused on financial services in sales before becoming an analyst, where he was top rated by Thomson Reuters Extel reports.
He has spent most of his career in corporate broking. He previously studied electrical engineering at Royal Navy Engineering College in Devon.
Working alongside Green was Mike Cuthbert. Cuthbert is managing director and head of UK products at Canaccord, where he is head of the financials team.
Cuthbert joined Canaccord after the transfer of the financials team from Bridgewell, where Cuthbert previously worked.
Canaccord previously raised money for this year’s biggest float on the Alternative Investment Market after Eland Oil and Gas went public with an £118m issue.