Tavistock Investments PLC said on Friday it has acquired Alpha Beta Partners, a Bath, England-based asset management business with nearly £3 billion in assets under management, as part of a strategic shift toward expanding its focus on asset management.
Shares in Tavistock were up 9% at 3.87 pence in London on Friday morning after the announcement. The Ascot, Berkshire-based financial advice and investment management firm said the deal aligns with Tavistock’s strategic focus on expanding its asset management operations in the UK retail investment market.
The acquisition, with an initial payment of £6 million and a maximum potential consideration of £18 million tied to ABP‘s financial performance over the next five years, strengthens Tavistock’s ability to deliver investment solutions to third-party advice firms, networks, and retail clients. Completion remains subject to approval from the Financial Conduct Authority.
Founded in 2017, ABP specializes in outsourced investment propositions for retail and wholesale investors. It reported annualised earnings before interest and tax of over £500,000 on revenue exceeding £4 million during the first nine months of its financial year.
Chief Executive Office Brian Raven said: ‘Alpha Beta Partners is joining us at the ideal time. 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.’
ABP’s Managing Director Geoff Brooks said: ‘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.’
In parallel, Tavistock confirmed the completion of the disposal of its subsidiaries Tavistock Partners Ltd and Tavistock Estate Planning Services Ltd to Saltus Partnership Holdings LLP. The deal is expected to double the company’s market value to £37 million.
Tavistock will receive an initial payment of £22 million in early December, providing ‘a substantial level of funding’ to refocus its activities on asset management.
The company has kept its adviser arm, Tavistock Private Client, and its protection business, Tavistock Protect. It aims to focus on investment management for third-party advice firms and direct, non-advised clients. The acquisition of ABP is described by the company as ‘key’ to this shift.
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