St James’s Place has acquired stockbroker and discretionary fund manager Rowan Dartington in a deal worth up to £34m.
The acquisition of the Bristol-based firm is for an initial consideration of £19m but could rise to £34m depending on performance.
Rowan Dartington employees 100 people and has over £1bn in funds under management.
SJP says it has been looking to introduce an in-house DFM service for some time. The company says the deal is aimed at attracting more high-net-worth clients, as well as encouraging advisers to join SJP who want to outsource their investment proposition.
The deal was announced as part of SJP’s results for the six months to the end of June.
The distribution business has posted a £23.5m loss, compared to £8.8m loss at the same time last year.
SJP says despite an increase in new business, its distribution arm was hit by its Financial Services Compensation Scheme levy for the full year almost tripling from £6.9m to £20m.
Overall SJP posted a pre-tax profit of £72.9m, down 7 per cent from £78.3m as at June 2014.
Funds under management have gone from £47.6bn to £55.5bn. Gross inflows in the first six months of the year reached £4.4bn, compared to £3.8bn last year, while net inflows rose from £2.4bn to £2.7bn over the same period.
Adviser numbers are up 4.7 per cent since the start of the year at 2,968.
SJP has also announced plans to add two new funds to its range later this year.
The Diversified Bond fund will be a global bond fund, while the Strategic Income fund will aim to generate a yield of around 5 per cent after charges. The SJP investment committee is in the process of selecting which managers will be most appropriate.
On the Rowan Dartington deal, SJP chief executive David Bellamy says: “As our business grows, we continue to seek opportunities to broaden our investment and related services for
“As part of that strategy, we’re pleased to announce we have entered into an agreement to acquire Rowan Dartington Holdings.
“The supplementary services, which include advisory portfolio management, direct equity, trust and charity portfolio management, will broaden the range of investment options we can offer to existing clients and enable us to access new clients who value such services.”
Rowan Dartington executive chairman Graham Coxell says: “We are incredibly excited about the future. We feel this opportunity represents the best possible ‘next chapter’ in Rowan Dartington’s growth and development, and is complementary to the already extremely successful and broad proposition of the SJP group.”