River & Mercantile has confirmed its plans to float in a move which the asset manager expects to raise £12 million of new money.
The IPO plans follow River & Mercantile's merger with PSolve earlier this year with the combined group having £8.4 billion of assets under management in its equity division and £8.5 billion in its derivatives business, generating £51.8 million of revenue in 2013 on a pro forma basis.
R&M said management will be locked in for two years following the float and said coming to market will provide better access to the capital markets and help it incentivise key staff.
The group, led by chief executive Mike Faulkner, announced the hire of former Cazenove Capital Management distribution head Robin Minter-Kemp (pictured) as a non-executive director last month and he will be joined on the board by fellow non-execs Jonathan Punter, Mark Johnson, Angus Samuels and Angela Crawford-Ingle.
Faulkner said: 'In an evolving investment industry, the group is well positioned to exploit the “pensions revolution” in which governance is increasingly a critical attribute of the client’s investment strategy. Our business represents a high growth, strong margin, diversified investment opportunity. This is underpinned by long-term client relationships, an experienced management team and a strong performance track record in equities and fiduciary management.
'Our investment performance, combined with a culture of innovating services to meet the evolving needs of our clients, leads to high client satisfaction levels and recurring revenues. We believe that our focussed growth strategy, together with our operational gearing, strong cash generation and scalable business model should deliver long-term positive returns to shareholders.'