Asset manager Gresham House will hand over £30m to acquire Baronsmead and other funds from manager Livingbridge.
The deal, which could rise to £40m, brings half a billion pounds in assets under management to the London-based manager.
The acquisition is expected to boost Gresham House’s earnings per share when it closes at the end of the month, the company said.
It brings Gresham’s total assets to just over £2bn, and adds 16 new employees to its ranks.
The deal is for Livingbridge’s Baronsmead and Equity Funds brands, the company said.
Gresham House chief executive Anthony Dalwood said: “The Livingbridge VC fund management business’ investment philosophy across public and private equity companies has generated strong performance and has clear financial and strategic benefits for long-term Gresham House shareholder value.
“The excellent team will add to our existing high-quality investment and client personnel, enabling additional growth opportunities for the group.
“The acquisition is an extension of Gresham House’s organic strategy, aligning investment goals of the two teams. Additionally, we expect the deal to be immediately earnings enhancing, taking the group’s [assets under management] past £2 billion, increasing our scale and relevance to investors and creating additional shareholder value.”