Miton Group has agreed to sell its Liverpool-based funds business, Miton Capital Partners to Seneca Investment Managers in a £6m deal.
Miton Capital Partners manages three funds - the CF Miton Distribution fund, CF Miton Diversified Growth fund, and the Midas Income & Growth trust.
The investment managers running these funds, including Alan Borrows, Simon Callow and Richard Parfect, will move across to Seneca and will report to CEO Stuart Eaton. The funds will be rebranded under the Senena Investment Managers name.
The business will change hands for a total of up to £6.4m - £3.5m payable on completion of the deal, plus an amount representing net assets as at completion (estimated to be £1.9m) payable by the later of three months after completion or 30 June 2014, plus a potential deferred payment of up to £1m.
The sale is subject to FCA approval and is expected to complete by early Q2.
The group said it wished to focus on its core strategies, so it decided to take advantage of the unsolicited approach it received for the Liverpool business.
Meanwhile, Miton's distribution director Graham Hooper will exit the business on 31 March.
In a trading update, Miton Group reported AUM of £3.1bn for the year end 2013, reflecting both the acquisition of PSigma and organic growth.
Adjusted pre-tax profit for the year 31 December 2013 are expected to be £4.5m, in line with market expectations, the group said.
It also reported a £435m outflow from its funds over the reporting period, although it still recorded a total net inflow of £350m.
On the business disposal, Ian Dighé, executive chairman of Miton Group, said: "The clients investing in our Liverpool funds have enjoyed improved performance over recent years, and we believe the improved trend will be sustained following the transaction with Seneca. We look forward to working with Seneca in future.
"Miton's funds under management, excluding the Liverpool business, have almost doubled in the last two years. The accelerating momentum in the group gives the board greater confidence for improved results in the current year."
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