7IM owner values platform at £185mn

7IM owner values platform at £185mn

Caledonia Investments, the owner of Seven Investment Management (7IM), has valued the adviser platform at £184.5mn.

In an unaudited update published today (October 7), the platform’s private capital backer shared a snapshot of its performance over the past year.

The £184.5mn valuation - dated end of September - has earned Caledonia an 8 per cent return on its investment for the first half of 2022. 

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However, this figure is less than half the £400mn valuation assigned to it by reports back in June.

According to Sky News, 7IM was put up for sale earlier this year and for a time, Brooks Macdonald was a potential buyer.

Caledonia bought 7IM around seven years ago, in 2015, for £100mn.

In its update, the owner said 7IM’s assets under management, net investment flows and revenue have all been impacted by volatility in public markets this year. 

Assets were over £20bn at the end of August 2022, down from £21bn at the start of the calendar year. The platform owner did not disclose investment flow or revenue figures.

Caledonia did say net fund inflows were positive, that the business has continued to grow earnings aided by cost savings, higher interest income and a “strong performance” from its acquired Partners Wealth Management. 

7IM bought £2bn London IFA Partners Wealth Management back in October 2020. In its results covering last year, the IFA made up £20mn of the platform’s £92mn revenue. 

The platform posted an 83 per cent uptick in profits before tax last year, hitting £9.5mn in 2021 compared with £5.2mn a year earlier.

The platform also owns Find a Wealth Manager, which made up a smaller £982,000 of the firm's overall revenue last year.