Martin Gilbert’s AssetCo agrees its biggest takeover

Martin Gilbert has struck his largest deal since leaving Commonplace Life Aberdeen, shopping for asset supervisor River and Mercantile in an all-share takeover that values the enterprise at virtually £100m.

Below the phrases of the deal, R&M shareholders will personal 41.6 per cent of the enlarged group. They may even obtain $190m in money from the sale of R&M’s options enterprise to Schroders, a deal that was introduced final 12 months and has been authorised by the FCA.

Total, R&M shareholders will obtain £289m, or 335p per share from the 2 offers.

Gilbert made his identify increase Aberdeen Asset Administration, earlier than it was purchased by Commonplace Life in 2017.

Considered one of many funding trade’s most prolific dealmakers, his ambition is to construct AssetCo into a brand new pressure. The Goal-listed firm had virtually £50bn below administration on the finish of final 12 months.

It acquired Saracen Fund Managers, the Scottish asset administration boutique, in 2021 and likewise holds stakes in Rize ETF and Parmenion, an advisory enterprise beforehand owned by Abrdn.

“River and Mercantile is a good match for us, given its folks, funding capabilities and consumer base,” Gilbert informed the Monetary Instances. “It strengthens our energetic fairness platform and its infrastructure technique would be the nook stone of our personal markets franchise. We’re effectively positioned to develop AssetCo organically complemented by some extra strategic acquisitions.”

Gilbert can be chair of digital financial institution Revolut and the advisory board of Lars Windhorst’s Tennor Group.

AssetCo’s path to finishing the deal was helped by the withdrawal of a rival suitor, Premier Miton, which made an strategy to R&M in December earlier than deciding this month to finish discussions a few doable provide.

R&M chair Jonathan Dawson mentioned the takeover “confirms the board’s view that the market was undervaluing R&M.”

The asset supervisor’s share worth closed at 300p on Tuesday.

“The board believes that the provide from AssetCo not solely represents good worth to shareholders, however offers our purchasers and colleagues with a strong funding platform led by a staff with deep expertise within the asset administration trade,” he added.

R&M additionally launched a buying and selling assertion on Tuesday which confirmed it had attracted internet inflows of £1.3bn for the six months to December 31 after registering internet outflows of £68m in the identical interval within the earlier 12 months.

The advance in investor inflows was blunted by internet withdrawals of £847m from the institutional enterprise within the second half of final 12 months, nearly all of which associated to changes in funding allocations following regulatory adjustments in Australia.

R&M mentioned its pipeline of recent enterprise was “persevering with to construct” with £200m of seed capital confirmed for the launch of two sustainable funding methods and a brand new infrastructure fund that can give attention to UK renewable power tasks additionally prepared for launch.