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7IM buys DFM to create £13.6bn national challenger

7IM buys DFM to create £13.6bn national challenger

Seven Investment Management (7IM) has acquired Edinburgh-based discretionary fund manager (DFM) Tcam.

The deal, subject to Financial Conduct Authority approval, will see the merged firm have £13.6 billion assets under management (AUM), with offices in London, Edinburgh and Jersey.

Joint Tcam chief executives Alex Montgomery and Haig Bathgate will become partners in 7IM, and join its management committee.

Several of Tcam’s senior team members will also become partners in 7IM.

7IM said the Tcam brand will continue ‘in the near term’, with the combined entity to operate wholly under the 7IM brand by the end of 2018.

7IM co-founder Justin Urquhart Stewart told Wealth Manager the firm receives merger and acquisitions offers 'from time to time', but revealed the Tcam deal was 'too good to turn down.'

He said: 'We said we were never going to acquire anyone, we were going to grow organically. But this one came along and then we changed our mind!

'Usually with mergers and acquisitions, a) it's never a merger of equals, and b) you spend the next year trying to sort out the new culture.

'Corporately it looks good, but you spend more time working on the culture and less on the investment management.'

He added: 'With [Tcam joint CEOs] Alex and Haig, we saw the light in their eyes. Culturally they're similar people, and they run money in the same way we do. It was a good fit.'

Tcam spun out of Scottish-based law firm Turcan Connell via a management buy out (MBO) in 2015. 

The MBO was backed by hedge fund manager Crispin Odey.

In its first full year as an independent firm, over the 12 months to the end of March 2017, it reported an increase in pre-tax profit from £743,000 in the previous year to £1.68 million.

The firm provides investment management to high net worth clients across the UK, with total AUM of £1.1 billion.

The firm has 64 staff, with offices in Edinburgh and London.

7IM chief executive Tom Sheridan (pictured) said: 'The two businesses have complementary strengths which will produce an improved investment service for our customers.

'I am delighted that Haig and Alex are joining the 7IM management team who, along with the wider Tcam team, will add to our active management expertise whilst the Tcam Private Office will be appealing to both 7IM’s intermediary and direct clients.

'This also significantly deepens our presence in Scotland.'

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