Mattioli Woods’ total client assets now sit at £12bn, marking a £2.7bn increase on May 2020 figures, which include the assets of its associate, Amati Global Investors.
The specialist wealth and asset management business has grown its assets by 29 per cent since suffering a slight dip between 2019 and 2020, when assets decreased from £9.4bn to £9.3bn.
The firm credited its significantly “increased” inflows, which exceeded £480m during the year to May 31, as well as “new business generation” for the asset hike.
Ahead of publishing its financial results in September, the firm shared a trading update today (July 6) in which it predicted year-on-year revenue growth of 7 per cent, and estimated a balance sheet holding £21.9m in cash for the year.
"The group's financial performance in the second half of the year [2020] benefitted from an easing of some concerns relating to Covid-19,” said chief executive Ian Mattioli.
He praised the UK’s closure of a Brexit trade deal, which “resulted in increased investment activity” in the latter half of 2020.
“[We] saw sustained and higher inflows into the group's discretionary portfolio management services during a period of considerable market volatility.”
The chief executive added new business generation was growing, resulting in a “stronger pipeline of new client leads”, paving the way “for future organic revenue growth”.
Yet to release figures on the performance of specific purchases, the firm said “bolt-on acquisitions [were] performing and integrating well”.
At the end of May, the wealth manager announced plans to buy private equity firm Maven Capital Partners and financial planning business Ludlow Wealth Management in deals worth more than £143m.
These acquisitions marked “the largest in the group's history”, according to Mattioli.
To fund its latest acquisitions, the wealth manager completed its “largest equity fundraise to date”, drumming up £112m. Whilst the Maven deal closed last month, completion of the Ludlow deal still remains subject to the Financial Conduct Authority’s approval.
Mattioli Woods has been on the acquisition trail for some time. This year, it also bought Caledonia Asset Management in a deal worth up to £1.6m.
Just a week prior to this, it had snapped up advice firm Pole Arnold Financial Management for up to £7m. And back in February, it bought Twickenham-based wealth management firm Montagu in a deal worth up to £2.34m.
The influx in deals throughout the first half of 2021 followed just one acquisition in 2020, which saw Mattioli Woods buy private client adviser and asset manager Hurley Partners in a deal worth up to £25.6m. This followed on from its acquisition of Glasgow-based Turris Partnership for £1.6m at the end of 2019.
Today, Mattioli concluded: "The integration of each of the recent bolt-on acquisitions remains key to the delivery of earnings enhancement and we are pleased that the integration of each business to the group is progressing well.”
ruby.hinchliffe@ft.com
