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Miton sells Liverpool funds business
by Dylan Lobo on Jan 24, 2014 at 07:44
Miton has agreed to sell its Liverpool fund management business to Merseyside-based Seneca Investment Managers for up to £6.4 million.
The AIM-listed firm said the disposal of Miton Capital Partners was in response to market trends, which have 'evolved beyond the credit boom'.
It highlighted that the evolution of core investment strategies and significant organic growth, complemented by last year's acquisition of PSigma, meant the group was highly profitable and retained a robust financial position.
In 2013 the company's £466 million in funds managed from Liverpool generated a gross revenue of £4.6 million.
Miton said an unsolicited approach prompted a strategic review of the Liverpool business, which had always been managed separately from its Reading and London divisions.
Although Liverpool's performance had improved in recent years, Miton concluded there was less prospect of rapid growth of its assets under management compared with other parts of the group.
It intends to use the cash from the disposal to reduce its regulatory capital requirement and fund further growth.
Miton chair Ian Dighé said: 'The clients investing in our Liverpool funds have enjoyed improved performance over recent years, and we believe the improved trend will be sustained following the transaction with Seneca. We look forward to working with Seneca in future.
‘Miton’s funds under management, excluding the Liverpool business, have almost doubled in the last two years. The accelerating momentum in the group gives the board greater confidence for improved results in the current year.’
Seneca chief executive Stuart Eaton added: 'Miton Capital Partners is a perfect fit for us - strategically, logistically and geographically. We had wanted to expand our asset management operations in order to offer a more holistic proposition to our clients; and the funds and experience we have acquired enable us to do just that.
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