Mentel’s Tatton buys out Prism Capital

Lothar Mentel’s Tatton Capital has bought out multi-manager firm Prism Capital Management, in a deal aimed at building its adviser presence.

Prism, which runs £270m in risk-rated funds, was launched in 2009 as a joint venture between Paradigm, Octopus Investments and a group of adviser firms, but Tatton – an asset management arm operated by Paradigm – has bought the other partners out.

Octopus will remain the investment manager on Prism’s four risk-rated funds.

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Tatton boss Mr Mentel, who was made redundant from Octopus Investments in 2011, said he had renewed the company’s contract due to its “solid and dependable performance” which had “successfully performed against their investment objectives and outperformed their respective IMA benchmarks”.

“Our appointed fund managers’ performance is reviewed on a monthly basis, and only if our performance expectations are not met will we consider a change,” Mr Mentel said.

“I will be conducting very hands-on oversight of the Octopus management of our funds, given I know the team, which I built during my time at Octopus, very well.”

Mr Mentel said he had parted company with Octopus on “amicable terms” and said the investment team was one he “respected and rated highly”.

He added Tatton would compete with other multi-asset funds and target IFAs.