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Brooks Macdonald buys Jersey wealth firm DPZ Capital
by Dylan Lobo on Apr 14, 2014 at 07:31
Brooks Macdonald has bought Jersey-based wealth firm DPZ Capital Partners.
The wealth firm is paying an initial £5.7 million for the firm, funded through the £3 million in cash and £2.7 million in new shares.
DPZ was founded in 2007 and controls around £430 million in assets and if all this money is successfully transferred to Brooks the acquisition price will rise to £10.8 million.
DPZ assets comprises £360 million discretionary and £60 million advisory, with the remaining £10 million run on an execution-only basis.
The buy fits with Brooks’ strategy to expand its international division, Brooks Macdonald International (BMI), which was acquired in 2012, and now employs 15 staff. It increases the firm's assets in the Channel Islands by 50%.
It will also open a new range of services to Brooks clients through DPZ's range of investment strategies founded on its core competencies: asset allocation, manager selection, fixed interest, credit investing, and equity selection.
Brooks intends to use DPZ's expertise to create a new fixed income proposition and a new platform team based on the success of DPZ's international MPS solution.
Brooks chief executive Chris Macdonald (pictured) told the market: ‘This is a very exciting acquisition for the group in line with our strategy to expand our international division based in Jersey.
‘DPZ is a high quality asset management business that has strong investment management and cultural synergies with the group. As well as adding scale to our international business DPZ bring a highly talented investment management team and additional skills to expand our offering.'
DPZ chief executive, a former Wealth Manager cover star, Darren Zaman added: ‘We believe that by combining with BMI we will become part of the leading investment management business in the Channel Islands and look forward to contributing to a strong and fast-growing international investment business that will bring many benefits to our clients and staff.’
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