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November 17, 2012 1:34 am
Brooks Macdonald has acquired Spearpoint, the Channel Islands-based fund manager, for £23.1m, in the latest example of consolidation in wealth management.
Cheviot, the discretionary portfolio manager, joined with Quilter, the private-client investment firm, earlier this week in an estimated £100m deal.
Brooks Macdonald is planning to raise £21.5m through a placing of nearly 1.9m new shares at £11.50, a 7 per cent discount to Friday’s close of £12.40.
The deal will take the group’s funds under discretionary management to £4.5bn, and widen reach.
Spearpoint reported a pre-tax profit of £2.5m in the nine months to September 30, from £1.1bn under management.
Brooks Macdonald’s share performance has trailed rivals Brewin Dolphin and Rathbones, but analysts at Peel Hunt rate the shares a buy, given growth in its funds under management.
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