Electra Partners has offloaded 25.1% of its stake in Premier Asset Management to Elcot Capital Management in a £10 million deal.
Electra remains a significant minority investor in Premier, but as part of the transaction, Elcot has an option to acquire up to a further 25.1% of the asset manager from the private equity firm.
Back in 2007, Electra invested £33 million in support of the £57 million deal to take Premier private. Its funds under management at the time were £1.8 billion and this figure has since grown to £3 billion, in part aided by the acquisition of 10 funds from Aberdeen Asset Management comprising £910 million in 2009.
Alongside Electra and now Elcot, Premier's management and staff own 25% of the company.
Alex Fortescue, chief investment partner at Electra Partners, said: 'The business has been transformed in recent years and now has the opportunity to accelerate this growth, not only by virtue of the industry’s attractive long-term fundamentals, but also because the Premier team has invested through the recession in building a really strong platform.
'The management team will play a vital role in taking this opportunity.'
Premier chief executive Mike O’Shea said: 'I speak for the entire team when I say that we’ve enjoyed a great relationship with Electra Partners. They backed us through the recession, including with new capital to make an acquisition at the peak of the crisis.
'The transaction we’re announcing today reflects the exciting growth opportunity we’ve created. We all look forward to working with Mike Vogel, and with Electra, in the years to come.'
Mike Vogel, chairman and CEO of Elcot and chairman of Premier, added: 'Premier has a really strong investment team which is generating some outstanding investment performance. As a result it’s growing fast.
'I’m looking forward to getting more involved with Mike O’Shea and the rest of the team as we continue to invest in distribution and in the brand in order to build a business of significant scale on this platform.'