Ashcourt Rowan parent Syndicate Asset Management(SAM) has sold its Guernsey-based investment management company to Hume Capital for approximately £1.8m.
The sale of the Guernsey company, which is the appointed manager of the Zenith fund range, follows a strategic review which concluded it was a "non-core division" for SAM.
Guernsey company Syndicate Asset Management (C.I.) made an operating loss of £384,000 and a reportable segment loss before tax to the group of £546,000 for the year ended 31 March 2010.
As part of the £1.8m deal, a cash payment of £850,000 will be made to Syndicate on completion of the deal, along with a pound-for pound payment of the multi-manager's net assets expected to be around £440,000. There will also be a write-off of an existing loan provided by Syndicate C.I. to Syndicate of approximately £530,000.
The Zenith funds provide financial intermediaries with a range of investment funds and multi-manager investment funds available in euros, sterling and US dollars. As at 30 November 2010, the funds total approximately £238m.
"The Board is delighted to have concluded the sale of its Guernsey operation which, following a strategic review, was viewed as non-core to the group's activities," says Syndicate Asset Management chairman
Hume Capital is an independently owned UK investment firm specialising in active fund management.
"Our objective is to build a strong asset management business focused on delivering outstanding investment performance and client service in a manner which aligns the interest of clients, the firm and its employees," says CEO Nitin Parekh.
"We are very excited about the opportunity to acquire a business with such a high quality client base and look forward to working closely with the funds' boards to enhance and develop the current range of funds."
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