William Cash, founder and editor-in-chief, is planning a management buy-out of Spear’s, the glossy magazine aimed at the wealthy.
The move, which is backed by Nectar Capital, comes just two years after Mr Cash sold a majority stake in the title for £1.2m to Luxury Publishing.
Luxury has a stable of in-house magazines for businesses catering to the wealthy, such as Cartier and Quintessentially, the concierge service. Nectar will take a 33 per cent stake in Spear’s while Mr Cash will hold 67 per cent. No figures were disclosed for the buy-out.
Following the deal, Mr Cash plans to sell up to 20 per cent of Spear’s shares, mainly to wealthy individuals, to raise £1m to expand the magazine. Existing shareholders include Ben Goldsmith, the financier and youngest child of the late billionaire Sir James Goldsmith.
Mr Cash said Spear’s had benefited from the economic downturn, as wealthy people were looking for new sources of advice on how to manage their finances and personal lives.
“The wealth management media space has really taken off because of the credit crisis. People don’t trust their advisers any more,” Mr Cash said. The very wealthy were looking for guidance on issues such as tax havens or pre-nuptual law and were increasingly turning to Spear’s.
In contrast, other publications at Luxury Publishing, such as in-house magazines for luxury products, had suffered in the downturn. “We’re going to stand alone,” Mr Cash said.
He is looking to move Spear’s into new areas such as book publishing, and chargeable internet services. Last year the company launched a Russian edition and it is now planning an Asian version.
Get alerts on Media when a new story is published