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.

Private bank giant a big buyer in £87m wealth IPO

Private bank giant a big buyer in £87m wealth IPO

Lombard Odier has taken a 7.5% stake in private client business Tatton Asset Management on behalf of its clients, following its admission to trading on AIM in an £87 million fund raise last week.

The Swiss giant purchased 4.1 million shares in the firm for its client portfolios, joining a register dominated by investment bluechips including BlackRock, Legal & General and Schroders.

The transaction is dated to the company’s market debut last week which would value to stake at £6.5 million at the offer price of 156p per share, or £7.7 million at today’s 185p.

Lombard Odier did not return a request for comment. Tatton runs around £4 billion on behalf of its clients, and reported a £2.1 million profit in 2016, on revenue of £12 million.

The company operates via three divisions: Tatton Capital, support service provider Paradigm Partners and Paradigm Mortgage Service. 

Speaking to Wealth Manager sister title New Model Adviser last week, Tatton chief executive Paul Hogarth (pictured) said that the capital would be used to fund organic expansion rather than an explicit buyout strategy, although the company remained open to the right potential purchase.

‘The business has matured and grown to the point I feel I have driven it forward as best I can [privately],’ he said.

‘I looked at the options, such as bringing on some debt or selling part of the business to private equity. But I always thought there was a danger of losing control and the best route that fulfilled all requirements was an IPO and floating on AIM.

‘We could look at options such as buying DFMs. It would be on-platform, sub-scale ones that could be a big opportunity for us. We would also look at buying another IFA support service we could work closely with.’

According to Reuters shareholder data, Lombard Odier is now the third largest holder of the stock, behind Hogarth's 18.7% stake and BlackRock's 8%. 

Shrewd investors in the top 10 include Liontrust and Miton, which each own 5.7% of outstanding equity.    

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
CIO Tapes 2: two warnings and a lot of optimism

CIO Tapes 2: two warnings and a lot of optimism

Our group of leading asset management CIOs see a lot of opportunities – and overseas investors are buying UK too

Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Read More
Your Business: Cover Star Club

Profile: Kleinwort Hambros' boss on how to manage five banks

Profile: Kleinwort Hambros' boss on how to manage five banks

Welding together Kleinwort and Hambros – two of Britain’s most historic banks, founded in 1786 and 1839 respectively – was always going to be a challenge.

Wealth Manager on Twitter