UK-based specialist investment house Tilney has undergone a management buyout with the backing of ve...
UK-based specialist investment house Tilney has undergone a management buyout with the backing of venture capital outfit Bridgepoint Capital.
This move will allow Tilney senior management to continue their current business strategy, increase their equity stake in the company and create a healthy return for the previous owners, US-based Refco.
According to Tilney, Refco saw the move as an opportunity to realise a good investment – Tilney has been growing quickly in the last few years and the weak dollar makes a sterling sale particularly profitable.
Key details of the deal, including the amount paid to Refco, the level of equity ownership the Tilney management has and Bridgepoint's view on the timescale and levels of return it expects from the investment, are not being made public.
Tilney has been aggressively acquisitive over the past four years, growing both its assets and expertise with purchases of hedge fund manager Opal (in 2002); the Pensions Partnership Consultancy (2003); the private clients division of Edinburgh Fund Managers and SG Hambros (2003); and property specialist Cardales (2004). This strategy will continue, though with financial backing now being sought from Bridgepoint.
Mike Black, partner at Bridgepoint, explained the attraction of the Tilney purchase and put the case for supporting the company's ongoing expansionthrough both organic growth and acquisition .
"The high net worth private client market is set to grow at 6% per annum and Tilney is firmly positioned in the fastest growing part of that market," he said. "It also benefits from a strong management team with a track record of building the business by acquisition. This is important given that its market remains fragmented, and we will work with Tilney in pursuing an acquisition strategy."
Tilney has funds under management of more than £5bn. There will no organisational or personnel changes resulting from this change of ownership and investors' accounts will continue to be managed in the normal way.
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