Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Brooks Macdonalds to purchase risk-rated fund manager

Brooks Macdonalds to purchase risk-rated fund manager

Brooks Macdonald is to purchase risk-rated fund management group Levitas Investment Management Services for up to £24 million

Brooks currently acts as investment adviser to the two Levitas funds, launched in July 2012 and currently managing a total £60.5 million, which are combined with a separate cash fund to provide a risk-rated investment service.

‘We are very excited about the opportunity of working with Levitas,’ said Chris Macdonald, Brooks chief executive. ‘We already have the privilege of managing these funds and we believe that the potential for growth in the future is significant.’

In a statement the company said the purchase would allow the company to extend the range of investment services which it offers and allow it meet a broader range of risk profiles.  

Brooks added that it believed the Levitas service had the potential to gather £150 million by June 2014 and £250 million the year after.

The agreement has been structured via put and call options, with Brooks having the right to purchase the company at a price equivalent to 3% of Levitas’ AUM at agreed periods between now and 2018.

The shareholders of Levitas will in turn hold a put option which they can choose to exercise, requiring Brooks to buy out the company. The deal is expected to be funded with cash.

Directors and shareholders in Levitas Craig Knight and Derek Miles are expected to remain in post following the acquisition.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: the opportunities in UK challenger banks

Brewin's Gutteridge: the opportunities in UK challenger banks

In this week's podcast, Brewin Dolphin's Ben Gutteridge and Guy Foster, discuss opportunities in the global financials sector with Aptus' Johnny De La Hey.

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Your Business: Cover Star Club

Profile: how Close Brothers gave power back to the regions

Profile: how Close Brothers gave power back to the regions

Almost a year into the role, Close Brothers Asset Management head of wealth management Andy Cumming has highlighted three keys areas of focus

Wealth Manager on Twitter