Tavistock Investments Plc has made two disposals and one acquisition as it refocuses its business model.
The Ascot-based firm has exchanged contracts for the acquisition of Alpha Beta Partners, a fellow asset management business based in London and Bath.
The deal, worth up to £18 million, is part of a move towards providing investment solutions to third party advice firms and networks, as well as to retail clients directly.
ABP was established in 2017 by Geoff Brooks and Andrew Thompson. It has approaching £3 billion of assets under management and a strategic focus on retail investors served by regulated advice businesses.
It expects to make EBIT (earnings before interest and tax) of over £500,000 on turnover of over £4m and, as at 30 September 2024, had net assets of just over £1.2m.
The total consideration will be directly linked to its financial performance over the next five years. There will be an initial payment of £6m at completion of the acquisition with the maximum potential consideration capped at £18m.
It recently announced the disposal of its networks of self-employed registered individuals to The Saltus Partnership Holdings LLP. All the completion conditions for the disposal of Tavistock Partners Limited and Tavistock Estate Planning Services Limited to Saltus have now been satisfied.
Tavistock will receive the initial consideration payment of approximately £22m by 2nd December 2024. It says the total consideration for the disposals of up to £37.75m is approaching twice the company’s current market capitalisation on AIM.
“Alpha Beta Partners is joining us at the ideal time,” said Brian Raven, Tavistock chief executive. “Their strategic plans and partnerships gel perfectly with ours, particularly in terms of how to improve investor services and value. We look forward to an exciting future together.”
Brooks, ABP managing director, added: “We are delighted to be joining Tavistock to embark on the next phase of our growth and development, allowing us to continue to both support our existing clients and create new opportunities.
”Our team has been very impressed with everyone we have met at Tavistock and our strategic vision and ambitions are aligned.”