Listed investment manager Tatton Asset Management has bought Tenet subsidiary Sinfonia Asset Management in what marks its first acquisition.
In an announcement to the stock exchange this morning (October 17), Tatton reported it would pay £2m from its own cash resources on completion, with an extra £700,000 payable if specific targets have been met by the end of years one and two.
The deal comes after the firm entered a strategic partnership with Tenet in June to provide model portfolio services to the advice group.
The on-platform discretionary fund management business stated growing its assets under management was “at the core” of the firm’s strategy and that acquiring firms was part of this.
Earlier this year Tatton’s chief executive Paul Hogarth said he expected the company to be part of a “wave of consolidation” in the DFM market in the years to come, predicting acquisitions such as this.
Sinfonia Asset Management will bring a total of £135m assets under management in five risk-targeted funds to Tatton.
Mr Hogarth said: “Following the strategic partnership agreement with the Tenet Group which we announced in June of this year, we are delighted to have acquired the Sinfonia range of funds from Tenet.
“The acquisition of these funds continues to strengthen our relationship with Tenet and complements our current portfolio range of investments which both broadens our proposition to the wider investment community.”
Tatton also operates the Paradigm Mortgages business, and Paradigm Consulting, a compliance outsourcer.
Tatton’s trading update for the six months to September (also published today) showed the firm had increased its assets under management by £900m, including the £135m from the acquisition of Sinfonia, to £7bn — an increase of 148 per cent for the six-month period.
The firm experienced net inflows of £441m while its mortgage distribution and support services business increased its market share.
The results also showed the firm’s IFA support business Paradigm Consulting lost five adviser members in the six months. It put this down to consolidation within the IFA market.
Mr Hogarth said: “While it's clear that the current political and economic environment remains uncertain, we have delivered a good first half to our financial year and have completed our first acquisition.
“As we look forward, we will continue to take advantage of the opportunities that exist in our markets and remain confident about the future progress of the group.”
imogen.tew@ft.com
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