Brewin Dolphin has reached a deal to purchase investment firm Duncan Lawrie Asset Management for £28m.
The discretionary fund manager announced today (19 December) that it will pay an initial cash payment of £25.5m and an extra payment of around £2.5m to reflect the value of net assets in the business.
The acquisition of DLAM, which is the investment management arm of Duncan Lawrie Private Banking, will add an extra £735m of funds under management and 1,000 clients to Brewin’s books, taking its total funds under management to £36.1bn.
The deal will be financed through Brewin’s internal cash resources, which stood at £171m at the end of the company's financial year at the end of September.
David Nicol, chief executive of Brewin Dolphin, said DLAM is an “excellent fit” for Brewin, pointing to its shared business philosophy, which is focused on a personalised approach when servicing clients.
He said: “The transaction demonstrates the attraction of Brewin Dolphin to wealth management professionals and clients who value traditional, personalised services coupled with an innovative, forward looking approach."
DLAM has 11 investment managers on its team and eight investment support staff, which are expected to join the group’s London and Bristol offices.
The investment team will continue to be led by Seth Cowburn, with around 84 per cent of funds under management being run on a discretionary basis.
Mr Cowburn, head of wealth management at DLAM, said Brewin Dolphin's financial planning, research, infrastructure and investment management expertise will “considerably enhance” the service DLAM can offer.
“We see the sale to Brewin Dolphin as a very positive development for both the clients and the investment management team,” he said, adding DLAM’s service and the staff will remain unchanged following the acquisition.
The transaction is expected to be completed during the first half of 2017 and is subject to regulatory approvals.
Duncan Lawrie Private Banking is the private banking arm of Camellia.