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Liontrust’s Cross and Fosh pour millions more into Brooks Macdonald
by Dylan Lobo on Nov 20, 2012 at 13:49
The transaction took place on 19 November and was worth around £4 million based on yesterday’s closing price of £12.25.
Shares in Brooks had added another 72p, or 5.9%, by 1pm today to stand at £12.97 , just shy of their 12-month high of £13.85 and raising the value of Fosh and Cross’ stake to nearly £20 million.
Commenting on the latest purchase Cross (pictured) told Wealth Manager: ‘The business scores well through the investment process in having high recurring income, above 70%. Strong visible earnings help us take a long-term view of the business.'
Cross added: ‘Brooks also scores well in [our] investment process’ second tier of analysis: procedures, formats, culture, customer databases and customer relationship.’
The news comes a few days after Brooks made its latest foray into the market by acquiring Spearpoint, a Jersey and Guernsey-based discretionary fund manager, on 15 November.
The purchase lifted the firm’s assets under management to £4.5 billion.
Spearpoint reported pre-tax profit of £3.9 million on revenues of £11.42 million in 2011 and Brooks founder and Wealth Manager Top 100 manager Chris Macdonald expects the acquisition to immediately enhance earnings.
'The acquisition of Spearpoint is a major step forward and captures an opportunity we have been seeking for a number of years,' he said, in a statement to the Stock Exchange last week.
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