The latest M&A deals in wealth and asset management.

AssetCo, the UK wealth and asset management group chaired by high-profile industry figure Martin Gilbert, has won regulatory clearance to buy Saracen Fund Managers for £2.75 million ($3.87 billion). The transaction was entered into after AssetCo was re-admitted to London’s Alternative Investment Market in April.

“The completion of the acquisition of Saracen Fund Managers is part of AssetCo’s overall strategy of investing in, building and managing asset and wealth management businesses. Saracen is a small fund management firm with great potential. Our aim is to grow the business through marketing its existing funds and, over time, broadening its product range to meet the evolving needs of investors,” Peter McKellar, deputy chairman and CEO of AssetCo, said.

“There are numerous structural shifts taking place within the asset and wealth management industry, including demographics and the use of technology. These are presenting challenges and opportunities for incumbent firms. Without the constraints of a legacy business, we believe we can capitalise on these shifts to generate significant value and to deliver successful outcomes for clients and shareholders,” McKellar said. 

Saracen, which was founded in the late 1990s, is an independent fund management business based in Edinburgh. The firm has three funds, operating on the T Bailey Fund Services Limited platform: the Global Income and Growth Fund (approximately £103 million of assets under management), the UK Alpha Fund (£14 million, and the UK Income Fund (£2 million).

The purchase agreement is an example of the kind of acquisition strategy that AssetCo has flagged as part of its business approach. According to its website, AssetCo is “primarily involved in acquiring, managing and operating asset and wealth management activities and interests, together with other related services.