Peter McKellar

Asset Co has also committed £5.25 million to help fund the growth of the business. The equity interest will be acquired from J&E Davy Holdings and the acquisition is expected to close on 27 July 2021.

AssetCo intends to fund the deal by raising £25m through a large share placing priced at £14.50 a share, which represents approximately 26% of the company’s existing share capital.

Rize ETF is believed to be Europe’s first specialist thematic ETF issuer and one of the fastest-growing providers of ETFs in the rapidly growing thematic ETF segment of the asset management industry. Rize ETF currently has over $450 million of assets under management, having launched its first ETF in February 2020.

The ETFs are marketed using traditional and digital channels and distributed primarily through wholesale channels, including IFAs, private banks, wealth managers, family offices and discretionary fund managers.

The board of Asset Co believes that there is enormous growth potential in the area of thematic ETF investing. Through a combination of AssetCo’s support with incremental capital and asset management expertise, coupled with access to new partnerships and distribution opportunities, the Board is confident Rize ETF will continue to grow rapidly and maintain a leading position in providing thematic ETFs to investors.

The intention is that AssetCo will fund the consideration for Rize ETF from an equity financing by way of an accelerated bookbuild for approximately £25 million, which will be launched in due course and a separate announcement will be issued setting out further details of this.

Peter McKellar, deputy chairman and CEO of AssetCo, commented: “The team at Rize has built an impressive thematic ETF platform, based on an incredibly exciting ethos. It provides investors access to products that enable them to participate in new and relatable themes and benefit from strong growth led by secular trends.

“The Rize approach to product development echoes one of the fundamental principles on which AssetCo’s strategy is based: that a new approach to asset management, unbridled by legacy constraints and ways of doing things, will drive significant growth, as technology led manufacturing and distribution of investment products tap into the new, emerging trends in the way the next generation of investors choose to allocate their capital.

“Our strategy is to position AssetCo to take advantage of the structural shifts taking place within the asset and wealth management industry, such as the increasing use of technology to help individual investors and their advisers. Rize has the team, pedigree and expertise to grow significantly and to continue to deliver product innovation for investors, building a world class thematic ETF business in the process. We are looking forward to working with the Rize ETF team in building the business and delivering value to investors and AssetCo’s shareholders.”