Caledonia Investments buys majority stake in 7IM

The Caledonia Investment trust has acquired a 94 per cent stake in Seven Investment Management (7IM).

The deal, which is still subject to regulatory approval, values the business at over £100m, including £25m of bank debt.

The investment trust will invest £77m in cash to acquire 94 per cent of the company from Zurich Holding and Aegon UK. The debt will be underwritten by Caledonia.

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7IM was set up in 2002 by Justin Urquhart Stewart and Tom Sheridan. The company has about £9.5bn in assets under management.

7IM will become the trust’s fourth largest holding, making up 4.7 per cent of its portfolio. The trust has a history of substantial involvement in wealth management. Close Brother has been one of the trust’s largest holdings for many years and makes up 3.4 per cent of its portfolio.