Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

£1 billion threshold in sight for European Wealth

£1 billion threshold in sight for European Wealth

Wealth boutique European Wealth expects the £1 billion asset threshold to be in sight over the next few months, hot on the heels of the firm’s acquisition drive.

Co-founder John Morton told Wealth Manager he expects to see inflows worth over £200 million by the end of the year. When added to the £630 million in assets the firm runs, this will bring it close to £900 million by year-end.

European Wealth was founded in 2010 and is led by chief executive and former Wealth Manager cover star Rod Gentry (pictured). It has 5,000 clients on its roster and Morton expects approximately 75% of the new assets to come from existing clients allocating more money to the firm.

He expects the remainder will come from the string of acquisitions in Cheltenham, Bromley and Worcester that it completed in 2012, alongside assets following new recruits.

From its £630 million of assets, European Wealth earned revenues of £3 million over the first half of the year, with an operating profit of £240,000. This compares with a turnover of £1.15 million for the first half of last year, and a loss of £100,000.

As a result of the expected growth in assets, European Wealth predicted that its 2014 operating profit would ‘more than’ double from this year’s performance.

Paul Everitt, director of the EW Group, which owns almost half of European Wealth, added that increased regulatory costs and the growing trend of large firms ditching smaller clients had created ‘both organic growth and consolidation opportunities’.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Hugh Yarrow: Why the equity income sector needs fixing

Hugh Yarrow: Why the equity income sector needs fixing

Hugh Yarrow's Evenlode Income fund was recently removed from the Investment Association's UK Equity Income sector.

Play GAM charity football tournament: the live draw

GAM charity football tournament: the live draw

Former Chelsea and England footballer Graeme Le Saux visits Citywire to make the draw for the tournament, where all proceeds going to Wheels for Wellbeing.

Play FIFA, Panama Papers…and what everyone’s getting wrong

FIFA, Panama Papers…and what everyone’s getting wrong

VIDEO: Investigative reporter Jeffrey Robinson reveals how major corruption scandals are being mishandled and what to expect next.

Your Business: Cover Star Club

Profile: JPM Wealth MD on breaking the glass ceiling

Profile: JPM Wealth MD on breaking the glass ceiling

During her tenure at JP Morgan, the private bank has changed the way it segments clients in a bid to improve focus

Wealth Manager on Twitter