Thesis Asset Management has acquired discretionary fund manager Cambridge Fund Managers as it targets small firms that are most exposed to regulatory pressures.
Thesis, which has £13.6bn of funds under management and administration, will bring £30m assets to the business and 80 clients from the acquisition. The deal is expected to complete on 31 December.
The Chichester-headquartered DFM is embarking on an acquisition trail following a management buyout in June where start-up firm Regit Bidco made a £47m bid for it.
Thesis director of marketing and business development Lawrence Cook says: “The management buyout earlier this year has resulted in a more expansive attitude for the company, and this deal is part of the growth that we want to achieve.”
Cook says Thesis will continue to look to acquire small DFMs.
He says: “We are keen to explore further opportunities where smaller DFMs are considering their options, particularly as the regulatory burden increases with the likes of Mifid II and GDPR. While the regulation is sensible, it is difficult for smaller organisations to meet the impending responsibilities and obligations, and this is where we want to help firms and their clients.”
Cambridge Fund Managers owner Henry Cottrell says the firm felt it was the right time for the company to get a buyer after 25 years. He says the transition will be “seamless”.
Cook says: “Henry has built a fantastic company, but understands the need to implement a successful succession strategy to ensure his clients have a positive experience. We are delighted to work with him in achieving this.”