River Global has announced that it has entered into heads of terms to acquire Devon Equity Management, the boutique European equities manager currently running around £835m of assets. The deal, valued at up to £2.46m, will be paid entirely in River Global A Ordinary Shares, with 16.67m shares issued initially at 6p per share and a potential further 24.33m shares due in 2026, subject to Devon’s revenue performance.
Devon generated an operating profit of £2.1m on gross revenues of £8.6m for the year to 31 December 2024 and reported net assets of £3.0m. Despite seeing its assets under management decline partly as a result of a tender offer from European Opportunities Trust (EOT) earlier this year, Devon is expected to remain profitable in its current financial year. River Global expects the transaction to be earnings enhancing after the first year, helped by synergies from integrating the business.
The acquisition is subject to due diligence, regulatory approvals and final legal agreements. As part of the deal, Simon Troughton (Devon’s chair) will join the River Global board as a non-executive director, while CEO Richard Pavry will take up an executive board role. Devon CIO Alexander Darwall will become co-head of European equities for the enlarged group alongside Charlie Southern, with fellow Devon founder Luca Emo Capodilista remaining in a senior role.
Devon Equity Management was launched in 2019 by Darwall, Pavry and Capodilista, all formerly of Jupiter. Its high-conviction style is focused on a concentrated portfolio of 25–35 positions, and Devon acts as the manager of European Opportunities Trust, a FTSE 250 closed-end fund. Darwall, who has managed EOT since its 2000 launch, has delivered an annualised NAV total return of 10.5% through to May 2025, well ahead of EOT’s MSCI Europe benchmark.
River Global chair Martin Gilbert welcomed the deal, praising Darwall as “an outstanding conviction asset manager” who will put River Global “properly on the map for European equities” at a time when the asset class is regaining investor interest. Gilbert also noted the firm’s intention to deliver improved services to EOT as part of the expanded platform.
Alexander Darwall commented that joining River Global will allow the Devon team to share “significant operational synergies” and reach new clients and markets while maintaining focus on delivering the best outcomes for current investors. Further updates will follow as the transaction progresses.
[QD comment Matthew Read: This looks like a sensible strategic step for both parties. River Global has been keen to expand its equity capability and distribution reach. Devon’s team, led by the industry veteran Alexander Darwall, has a long record of high-conviction investing with a strong track record, particularly through European Opportunities Trust, which will benefit from River Global’s additional scale and reach in marketing and distribution.
While Devon’s asset base reduced following the EOT tender earlier this year, River’s commitment to supporting the trust and its European equities franchise could be reassuring for shareholders, who will benefit if it is able to grow again. Subject to a smooth integration and FCA approval, the deal should give Devon a broader platform and potentially open new client channels, while providing River with a credible foothold in active European equity management.]
