Martin Gilbert

The acquisition was pending approval by the FCA to the change of controller of SVM. This approval has now been granted, all the conditions pertaining to the acquisition have been satisfied and the acquisition has been completed.

The consideration payable under the terms of the acquisition was, after balance sheet adjustments, £11.2 million satisfied by the issue of £9m nominal of 1% fixed rate unsecured convertible loan notes 2023 in AssetCo and, as a result of higher net assets of SVM on completion of £4.5m, approximately £2.2m in cash.

SVM is a key component of AssetCo’s plans to have a strong and dynamic asset management hub in Edinburgh. Completion of the acquisition brings assets managed by the AssetCo group of companies in the Scottish capital to nearly £700m.

The intention is that, over time and subject to appropriate regulatory approvals and client consents, the majority of compliance, operational, distribution and marketing resources will be shared within the broader AssetCo group of companies. At the same time, the unique qualities and strengths for which SVM are well known will be preserved to form a bedrock of growth for the future.

Martin Gilbert, chairman of AssetCo, said: “The completion of the acquisition of SVM is part of AssetCo’s overall strategy of investing in, building and managing asset and wealth management businesses.

We are proud to be building an asset management hub of investment excellence in Edinburgh and the completion of the SVM acquisition is integral to this. SVM is a very well regarded fund management firm with a strong heritage and investment track record.

“We are looking forward to building upon SVM’s many strengths as we continue to develop a listed equity business at AssetCo to meet the long-term financial needs of investors.”

Colin McLean, the founder of SVM, commented: “Speaking for myself and the whole team at SVM we are immensely proud of what we have achieved over the past 32 years. We could not have done so without the unstinting support of our clients, many of whom have been with us since the early days.

“We look forward to working with AssetCo to build an expanded and dynamic equities platform to serve all of our clients and leverage opportunities for the future.”