Mergers and acquisitions  

Gilbert’s AssetCo takes 30% stake in Parmenion

Gilbert’s AssetCo takes 30% stake in Parmenion

AssetCo, chaired by former Standard Life Aberdeen joint chief executive Martin Gilbert, has acquired a 30 per cent equity stake in Parmenion Capital Partners, as the sale of the platform completed.

AssetCo will pay up to £27.8m for the stake, which will be paid in cash, with a payment of £20.6m due on completion and up to £3.6m due in each of March 2022 and March 2023.

It comes as SLA announced today (July 1) that it had successfully completed the sale of Parmenion to private equity house Preservation Capital Partners, initially announced in March.

Commenting on the AssetCo deal the firm's deputy chairman and CEO Peter McKellar, said: “Our strategy is to position AssetCo to take advantage of the structural shifts taking place within the asset and wealth management industry, such as the increasing use of technology to help individual investors and their advisers. 

“It is intended that this will be achieved through the acquisition, primarily, of majority stakes in selected businesses which play into these structural shifts and supported by strong distribution to drive organic growth.”

He added: “Few businesses will divert us from this approach, but we were compelled by Parmenion's market positioning, strong growth potential and excellent management team and on this occasion we are delighted to have secured a significant minority interest in conjunction with Preservation Capital Partners.”

The platform was first put up for sale in November last year and has now been sold for £102m.

SLA said the rationale for it was the “simplification of its adviser strategy around the business’ core propositions Wrap and Elevate”.

SLA chief executive officer Stephen Bird said: “The completion of the sale of Parmenion is a step forward in simplifying our business and delivering on our strategy. 

“Financial adviser technology will be a key engine of growth in the UK wealth and savings market. By focusing on our award-winning Wrap and Elevate platforms, we are best placed to capitalise on this opportunity.”

He added: “Parmenion has had great success during its time as part of the SLA group and we wish the team well on the next stage of their journey with Preservation.”

AssetCo’s purchase of its stake in Parmenion follows an update by the firm earlier this week that it is planning to make further acquisitions having collected £30.9m to fund its asset and wealth management strategy.

AssetCo appointed Gilbert as chairman of the AIM-listed firm in March as the business planned to pursue a new strategy of acquisitions.

In May, it acquired Edinburgh-based Saracen Fund Managers for £2.75m

sonia.rach@ft.com

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