Peter Webb’s fledgling asset management firm has received significant investment from serial entrepreneur Bob Morton.
Morton’s investment in Webb Capital is believed to be several hundred thousand pounds and will be used towards funding organic growth and new product development. Morton, who sits on the boards of numerous small cap firms, has also promised Webb further capital for acquisition opportunities.
In addition, Morton’s personal investment vehicle Hawk Investments, which established a family office in Jersey in the second half of last year that controls £500 million in assets, has bought a 29.99% stake in Webb Capital.
Webb (pictured) first crossed paths with Morton in the late 1980s when the former was working for Thornton Investment Management.
The pair have been co-investors in a number of small caps during their careers and remained close friends as Webb went on to found Unicorn Asset Management, before establishing his current venture two years ago.
The investment is a major boost for Webb Capital in its push to gain a foothold in the ultra-competitive asset management sector.
The business controls a relatively small £22 million in assets, including the top performing Elite Webb Smaller Companies Income & Growth fund, which has returned 42% over the 12 months to the end of May versus a sector average of 12.3% to propel it to the top of its 107-strong peer group.
Webb told Wealth Manager: ‘I have known Bob Morton for many years and have the greatest respect for everything that he has achieved during a successful lifetime in business and in markets.
‘The establishment of the new Hawk family office in the Channel Islands, headed up by Bob’s youngest son Robert, has created the ideal moment for us to cement our good relationship and work even more closely together in the months and years ahead. Indeed, these are exciting times.
Webb believes his business offers an ideal platform for young talented fund managers and will use Morton’s cash to acquire individuals and teams which fit the culture.
‘We would like to get more funds under management and acquire teams and managers which share our ethos,’ he said. ‘We have a clean structure and can incentivise new joiners. I’ve always been a keen fan of an equity ownership structure.
‘If we’re going to take market share from our very good and successful competitors we will have to be very fleet-footed and innovative. We will have to walk down a few different paths.’