Rathbone Brothers announces two acquisitions and fundraising

1st Apr 2014 07:17

Rathbone Brothers has purchased Jupiter Asset Management's private client and charity investment management business and part of the London private client wealth management unit of Tilney Investment Management.Jupiter's private client assets, which represent 7% of its £31.7bn under management, are being offloaded to Rathbone Investment Management for £43m, assuming all the £2.1bn of in-scope client assets transfer to Rathbones.Rathbone will pay £14.3m for Tilney London Private Clients between completion in June 2014 and January 2016, if all the funds under management are transferred. The wealth investment company has also raised £24.4m through the placement of more than 1.34m shares with institutional investors at 1,814p each.The group said it expects the acquisitions to be earnings neutral this year and earnings enhancing next year.The transactions have boosted Rathbones' funds under management by about 12.7% to £24.8bn. Chief Executive of Rathbone, Philip Howell, said: "The acquisitions of these businesses from Jupiter Asset Management and Tilney Investment Management are an excellent fit. "We expect to see more acquisition opportunities in the private client industry in the short to medium term. Raising capital now will give us flexibility to continue to take advantage of similar opportunities as they arise."RD