Caledonia is buying a majority stake in 7 investment management in a deal that values the business at £100m.
7IM was established in 2002 by its co-founders, Chief Executive Officer, Tom Sheridan, and Head of Corporate Development, Justin Urquhart Stewart, along with their Chief Finance Officer, Charles Sparrow, and has grown from its seven founder members to a team of more than 190 people. At 30 April 2015, it had assets under management and administration of approximately £9.5bn.
Dependent on the date of completion, which is subject to the Financial Conduct Authority’s approval, Caledonia will invest up to £77m in cash to acquire approximately 94% of 7IM Holdings Ltd, the controlling member of Seven Investment Management LLP which operates the 7IM business, from its current owners, Allied Zurich Holdings Ltd and Aegon UK plc. 7IM’s management team will subscribe £5.0m for the remaining equity, with the balance of the purchase costs to be provided by £25m of bank debt, which Caledonia has agreed to underwrite in the event that this is not in place by completion.
For its financial year to 31 December 2014, 7IM Holdings reported profit before tax of £8.6m and gross assets of £42.9m.
CLDN : Caledonia buys 7 investment management