CompaniesMar 6 2023

AssetCo buys asset manager for £4.1mn

Search sponsored by
AssetCo buys asset manager for £4.1mn
Martin Gilbert, whose company AssetCo has bought an asset manager (Simon Dawson/Bloomberg)

Martin Gilbert’s AssetCo has acquired an asset management firm for £4.13mn.

In a statement to the stock exchange this morning (March 6), the company said it is to buy the entire issued share capital of Ocean Dial Asset Management from its current owner, Avendus Capital Asset Management.

Ocean Dial AM, which was established in 2005, manages the assets of the £127mn India Capital Growth Fund, which had an annualised run rate revenue of £1.4mn as at February 23.

The acquisition is subject to approval by the Financial Conduct Authority and the Reserve Bank of India and the Securities Exchange Board of India, which AssetCo expects to complete by the third quarter of this year.

Martin Gilbert, chair of AssetCo, said: “AssetCo's mission is to acquire, improve and grow asset management businesses with potential. 

“We are excited about the long-term potential that India offers and see opportunities to add value by bringing Ocean Dial together with the other active equity asset management businesses we are combining under the River and Mercantile brand."  

AssetCo, a shell company taken over by Gilbert in 2021, swung to a loss in 2022 as a result of acquisitions and operating costs.

The company lost £9.2mn in the year to September 30 2022, with total administrative expenses of £25.6mn wiping out £8mn in revenues.

The acquisitions in 2022 included River and Mercantile in June, Revera Asset Management in August and SVM Asset Management shortly after the year end.

Revera, SVM and Saracen Fund Mangers, another company acquired by AssetCo, are now all working together as an active equity asset business.

Gilbert declared an “assault on costs” as a result of the company’s performance.

“An aggressive assault on continuing costs is on-going and remains a key focus of the coming year,” he said.