Mattioli Woods is set to make its "largest acquisitions to date" with the deals to buy private equity firm Maven Capital Partners and financial planning business Ludlow Wealth Management in deals worth more than £143m.
The wealth manager hailed the two acquisitions as a “significant milestone in its growth strategy”.
The deal with Maven will see Mattioli Woods pay £100m, comprising £80m up front and a further £20m on meeting performance targets in the four years after completion.
Mavin is a private equity investor and alternative asset manager with a 53-strong investment team.
It offers investment opportunities in VCTs, private equity and property and has assets under management of £772m.
Meanwhile the Ludlow Wealth Management deal will see Mattioli Woods pay £43.5m, comprising £36.1m up front and a further £6.4m in cash and up to £1m in bonuses based on performance.
Ludlow Wealth Management is one of the largest independent providers of investment, financial planning and pension advice in the north west of England with 61 employees, including 22 advisers.
It has assets under advice of £1.6bn.
To fund the deals Mattioli Woods, which is listed on the Aim, is seeking to raise £110m through a share issue.
Ian Mattioli, chief executive of Mattioli Woods, said: "The acquisitions of Maven and Ludlow Wealth Management represent meaningful progress towards our ambitious medium-term goals. We have a strong track record of combining like-minded businesses that share the same culture and ethos of putting clients first.
“The teams at Maven and Ludlow Wealth Management share our passion for delivering exceptional client outcomes and going the extra mile.
"Throughout our discussions with Bill Nixon at Maven and Ian Hemingway at Ludlow Wealth Management, it has been apparent that we share a desire to continue growing the enlarged group, further enhancing our client proposition and delivering sustainable shareholder returns.
"These transactions represent a complementary extension of the group's existing investment proposition and add to our distribution capacity, allowing us to continue developing our product offering, accelerate organic growth and realise both revenue and cost synergies.
“I believe we are better-positioned than ever to provide our clients with the proactive advice and bespoke investment solutions they require.”
Hemingway, chief executive of Ludlow Wealth Management, said: “This is a hugely positive deal for staff and clients of Ludlow Wealth Management alike. We have known the team at Mattioli Woods for many years, and respect them for sharing our commitment to deliver absolutely the best client service we can offer.
“We have always put the client at the heart of everything we do and we look forward to this continuing.”
Today’s deal comes after Mattioli Woods bought Caledonia Asset Management last month, in a deal worth up to £1.6m.
This came only a week after it snapped up advice firm Pole Arnold Financial Management for up to £7m.
The firm has been on the acquisition hunt for a while as back in February Mattioli Woods bought Twickenham-based wealth management firm Montagu, in a deal worth up to £2.34m.
At the end of 2019 it acquired Glasgow-based Turris Partnership for £1.6m, and last year (March 2020), it acquired private client adviser and asset manager Hurley Partners in a deal worth up to £25.6m.
amy.austin@ft.com
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