Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Aberdeen co-founder takes wealth firm public to fund acquisitions

Aberdeen co-founder takes wealth firm public to fund acquisitions

European Wealth has staged a reverse takeover of its parent company that will see it list on AIM.

The terms of the deal involve the firm’s listed parent EW Group – which owns almost half of European Wealth; a high proportion of the balance is owned by European Wealth’s managers – buying the entire business for £7.1 million. This constitutes a reverse takeover under the market’s rules.

‘We believe that significant opportunities for growth, both organic and acquisitive, exist within the wealth management industry,’ explained Paul Everitt, executive director of EW Group.

However, he argued that European Wealth’s current ownership arrangement ‘does not provide an efficient structure through which to raise growth capital’.

Everitt concluded: ‘For [European Wealth] to fully exploit the opportunities for growth, both organically and by acquisition, within the wealth management industry then the ownership…need[s] to be consolidated in order to provide clarity to current and future investors.’

The EW Group was founded in 2004 as a private-equity vehicle. In April 2012 it acquired a 33% stake in European Wealth, which it subsequently increased to 49% in March 2013.

Since the original investment in 2012, European Wealth has grown its funds under management from £150 million to more than £710 million today.

The firm is headquartered in London, and after a series of four acquisitions it has expanded with regional offices now in Brighton, Cheltenham, Worcester, Wokingham and East Malling. It currently employs 54 people and also draws on 11 consultants.

European Wealth’s founding team includes several industry veterans, including Aberdeen Asset Management co-founder George Robb, former Ashcourt chief executives Rod Gentry (pictured) and John Morton.

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 Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter