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View the article online at http://citywire.co.uk/wealth-manager/article/a725179

Brooks Macdonalds to purchase risk-rated fund manager

by David Campbell on Dec 20, 2013 at 07:27

Brooks Macdonalds to purchase risk-rated fund manager

Brooks Macdonald is to purchase risk-rated fund management group Levitas Investment Management Services for up to £24 million

Brooks currently acts as investment adviser to the two Levitas funds, launched in July 2012 and currently managing a total £60.5 million, which are combined with a separate cash fund to provide a risk-rated investment service.

‘We are very excited about the opportunity of working with Levitas,’ said Chris Macdonald, Brooks chief executive. ‘We already have the privilege of managing these funds and we believe that the potential for growth in the future is significant.’

In a statement the company said the purchase would allow the company to extend the range of investment services which it offers and allow it meet a broader range of risk profiles.  

Brooks added that it believed the Levitas service had the potential to gather £150 million by June 2014 and £250 million the year after.

The agreement has been structured via put and call options, with Brooks having the right to purchase the company at a price equivalent to 3% of Levitas’ AUM at agreed periods between now and 2018.

The shareholders of Levitas will in turn hold a put option which they can choose to exercise, requiring Brooks to buy out the company. The deal is expected to be funded with cash.

Directors and shareholders in Levitas Craig Knight and Derek Miles are expected to remain in post following the acquisition.

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