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AssetCo acquires Edinburgh-based fund manager for £2.8mn

AssetCo acquires Edinburgh-based fund manager for £2.8mn

AssetCo has acquired a fund management business as part of its plan to establish an active equities business, a month after its takeover of River & Mercantile.

In a statement to the stock exchange today (February 28), the company said it has bought Revera Asset Management for £2.8mn, subject to regulatory approval.

Founded in 2003, Revera has two funds operating on the Smith & Williamson fund administration platform, called S&W Revera UK Dynamic Fund, and the Syke Trust, managing £108mn and £10mn respectively.

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The funds are managed by Stephen Grant and Glen Nimmo, who have both previously worked at Scottish Amicable and Ivory & Sime. 

AssetCo said its board believed there were “significant opportunities” to enhance the distribution and appeal of the UK dynamic fund and to widen the funds offered by the company.

Campbell Fleming, chief executive of AssetCo, said Revera is home to highly regarded and experienced fund managers, and the deal demonstrates the appeal of AssetCo’s mission and business model.

“The acquisition of Revera is the next step in our plan to establish an active equity platform as part of our overall strategy to build an asset and wealth management business that delivers for investors in the 21st century. 

“Our active equity platform will offer a range of products and investment styles to cater for clients' evolving needs.”

Nimmo, who is also the chief executive officer at Revera, said the team had been impressed with AssetCo’s dynamism since the launch of its strategy. 

“Most importantly, however, we believe that our clients will benefit as we retain our commitment and focus on our investment offering, within an organisation with greater operational capabilities," he said.

The acquisition comes a month after AssetCo confirmed its takeover of River & Mercantile.

R&M, alongside Saracen and Revera, will form part of AssetCo’s new equities business.

The group said its intention is to launch products which invest in unquoted companies, particularly unquoted companies in the ESG universe.

AssetCo is a former shell company which Gilbert and several former colleagues from the firm he founded, Aberdeen Asset Management, have used to buy stakes in a number of businesses in the asset and wealth management sectors, including a stake in the Parmenion platform and Saracen.