Ashcourt Rowan is to acquire adviser firm UK Wealth Management for up to £14.25m and plans to fund the move through a share placing.
The deal, subject to approval from the Financial Conduct Authority, will add £1.3bn in assets under management to Ashcourt Rowan’s books as well as five offices in the north of England.
Once complete, the deal willl bring Ashcourt’s assets under management to £5bn – £1.9bn of which is managed on a discretionary basis.
The acquisition will be funded by a placing of 8.25m shares at 185p per share, raising approximately £15.3m before costs.
UKWM is currently owned by private equity firm Duke Street and generates annual revenues of £8.8m.
Ashcourt Rowan Group chief executive Jonathan Polin says: “This is a transformative deal for Ashcourt Rowan and an important step on our journey to become a leading UK wealth manager.
“UKWM’s business is complementary in terms of culture, outlook, client base and office footprint, adding locations in the north of England where Ashcourt Rowan was previously under-represented.”