14th Apr 2014 07:00
LONDON (Alliance News) - Brooks Macdonald Group PLC Monday said it has acquired Jersey-based DPZ Capital Ltd from DPZ Holdings Ltd for up to GBP13.0 million, including about GBP1.0 million of net current assets, in a move designed to bolster the wealth manager's discretionary funds under management and international presence.
In a statement, the AIM-listed wealth manager said the acquisition increases pro forma discretionary funds under management by GBP360.0 million to GBP6.04 billion.
Brooks Macdonald, which made the acquisition through subsidiary Brooks Macdonald Asset Management (International) Ltd, said it has already paid GBP5.7 million for DPZ Capital. That is made up of GBP3.0 million in cash, while the remaining GBP2.7 million will be new shares at an agreed price of 1,706.4 pence a share. A further GBP2.4 million will be paid in cash in October 2014.
Another cash payment will be made based on the value of DPZ's funds under management at the end of March 2016.
If the full value of DPZ's funds under management are transferred to Brooks Macdonald Asset Management (International), the consideration would total GBP10.8 million, excluding net current assets. All cash payments are being financed internally.
Brooks Macdonalds has a strategy of building on its international division, Brooks Macdonald Asset Management (International), which was acquired in 2012. The wealth manager said it intends to create a new fixed income offering, based on the existing DPZ team. In addition, a new platform team will be created, reflecting DPZ's International MPS.
Wealth management business DPZ Capital was founded in 2007. It manages a range of investment strategies, focusing on asset allocation, manager selection, fixed interest and credit investing, and equity selection. According to Brooks Macdonald, DPZ had about GBP430.0 million of funds at the end of March, of which about GBP360.0 million is managed on a discretionary basis, about GBP60.0 million on an advisory basis, and about GBP10.0 million on an execution-only basis.
"DPZ is a high quality asset management business that has strong investment management and cultural synergies with the group. As well as adding scale to our international business DPZ bring a highly talented investment management team and additional skills to expand our offering," Brooks Macdonald Chief Executive Chris Macdonald said in a statement.
DPZ Capital Ltd Chief Executive Darren Zaman said he is "excited" to be joining the wealth manager.
"We believe that by combining with BMI we will become part of the leading investment management business in the Channel Islands and look forward to contributing to a strong and fast-growing international investment business that will bring many benefits to our clients and staff," Zaman said.
By Samuel Agini; [email protected]; @samuelagini
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