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Tavistock sells £650,000 stake to fund acquisitions

Tavistock sells £650,000 stake to fund acquisitions

Advice firm Tavistock Investments has sold a minority stake to a London and Hong Kong-based asset manager as part of a fundraiser for acquisitions.

It comes as Tavistock sets its sights on the wealth and asset management acquisition trail in the UK and Europe for 2020. 

In an update to the market today (March 19) the company confirmed it had raised £650,000 of equity capital in a share issuing, with Hugh Simon, the chief executive and owner of the Hamon Investment Group, becoming one of the largest single shareholders in the business. 

Mr Simon, whose company Hamon owns Blackfriars Asset Management, now holds a 4.94 per cent share in Tavistock, with the remainder of the shares being bought by the adviser's chairman, Oliver Cooke, and chief executive, Brian Raven.

As a result of the fundraising Mr Cooke and Mr Raven will now hold 4.45 per cent and 10.78 per cent of Tavistock shares respectively. 

In today's announcement Tavistock said it was interested in finding acquisition opportunities in the wealth and asset management sectors in the UK and Europe.

The company said: "Tavistock's board believes that a strategic partnership with Hamon Group provides an opportunity to significantly increase the assets invested in its funds, particularly the 90 per cent protection portfolios managed with Morgan Stanley & Co International Plc."

Brian Raven, chief executive at Tavistock Investment, said: "We are pleased that the fundamental value of the company, the potential of our strategic initiatives, and in particular, the wide appeal of our protected funds, have been recognised by such an experienced industry figure.

"We look forward to progressing our growth plans together. The placing has also strengthened the company's working capital and regulatory capital position."

Mr Simon said: "Hamon Group sees the UK wealth market as an attractive segment and one that is particularly well suited to Tavistock's growing suite of guaranteed and ESG products. 

"I am delighted to be able to support Tavistock's continued growth and to explore areas of potential synergy between our two organisations."

Last year Tavistock terminated its "strategic alliance" with national advice company and network Lighthouse, following Quilter's take over of the latter. 

The agreement had seen Lighthouse pay £1m for a 5.3 per cent stake in Tavistock in 2018, with the two companies agreeing to establish an investment management service together. 

rachel.mortimer@ft.com

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