Tatton Asset Management is set to float on the London Stock Exchange next month, bringing both its DFM service and support service network Paradigm to the public market.
Tatton hopes to raise £50m from the deal. The firm will list as Tatton Asset Management, splitting into three subsidiaries: Tatton Capital Limited for DFM services; Paradigm Partners for support services and Paradigm Mortgage Services for mortgage advice.
Tatton chief executive Paul Hogarth describes Tatton, which has £4bn in assets under management, as a “new model asset manager” that wants to challenge “the existing off-platform, traditional incumbents whose discretionary fund management services have normally been reserved only for the very wealthy.”
£10m of the £50m raised will be new money, but £40m will come from existing shareholders selling up, including advisers, who were offered equity stakes in Tatton for early adoption when the service launched.
Roughly 240 advisers use Tatton, of which around half have equity stakes.
Hogarth says: “The IPO of the Tatton Asset Management marks a very important and exciting milestone in the development of the group, allowing us to build our market profile further, reward our staff and other stakeholders, and provide access to the capital markets when needed in the future. I look forward to working with our new institutional shareholders in continuing to build our business further.”
The listing will formally take place on 6 July.