Wealth manager consolidation continues with off-shore deals
TWO MORE wealth managers joined the growing trend for consolidation in the sector yesterday after Brooks Macdonald and Rowan Dartington struck deals to buy offshore rivals.
Brooks Macdonald, which is listed on the junior stock market, said it had acquired DPZ Capital, a 15-person strong investment manager based in Jersey.
Brooks will pay £5.7m up front – comprised of £3m cash and £2.7m shares – and a further £2.4m in October taking the total to £8.1m. A further sum could be paid taking the total price to £10.8m.
Meanwhile Bristol-based wealth firm Rowan Dartington yesterday said it had acquired Isle of Man-based online platform Acordias, which offers technology for financial advisers.
The deals are part of an increase in M&A activity in the wealth sector. In February Deutsche Bank sold wealth firm Tilney to Permira, which it is set to combine with its other firm Best Invest.
Deutsche also sold part of its wealth management team in London to Rathbone Brothers. Rathbones also acquired the wealth unit of Jupiter Fund Management.