Schroders has revealed it paid nearly £86m for its stake in advice firm Benchmark Capital.
In its results, published this morning, (2 March) the FTSE 100 company revealed it had taken a 65 per cent stake in Benchmark.
But Schroders only has a 49 per cent voting stake in the company with Ian Cooke, Benchmark Capital's chief executive, maintaining control.
The deal added £3.4bn of assets under management to Schroders as well as £11.1bn in assets under administration.
Schroders paid for the company with £80.6m in cash and £5m in its own shares.
In its results Schroders said: “Benchmark Capital is a technology-led, high-quality adviser support business based in the UK, which has the potential to significantly enhance the service we provide to UK intermediary and wealth management clients.”
Benchmark Capital consists of a number of different companies including Aspect8, the chartered financial planning firm, and Best Practice IFA Group, a network.
It also includes a technology company, an institutional funds platform, and a small restricted advice business.
When the deal was announced in November Schroders said Mr Cooke would remain a core owner of the business and its existing executive team will continue to run the business day-to-day.
But Schroders chief executive Peter Harrison has joined the company’s board.
Mr Cooke founded Aspect8 in 1993, which was followed by Best Practice a decade later.
He formed Benchmark Capital, which provides technology solutions, discretionary platform and support services to more than 120 firms, last year.