It was revealed in a stockmarket announcement, that Brooks Macdonald has acquired 100% of Cornelian’s issued share capital from its shareholders, including senior management.

The company paid an initial sum of £31m, consisting of £22m in cash and £9m in Brooks Macdonald shares.

Brooks Macdonald said that “a further contingent cash consideration of up to £8m is payable depending upon Cornelian meeting certain pre-agreed performance targets relating to the retention and growth of client assets as well as the realisation of cost synergies. Completion is expected to take place in the first quarter of 2020 subject to regulatory approval”.

Brooks Macdonald also announced an equity raising of around £30m to finance the deal, which is expected to complete in Q1 2020.

Cornelian Asset Managers issued a statement which said: “Brooks Macdonald is a successful investment management and financial planning company with over £13bn funds under management, focused on providing high-quality investment solutions to IFAs. There is a strong strategic fit between Brooks Macdonald and Cornelian, with a shared cultural commitment to clients and intermediaries, and to high-quality investment management.”

Caroline Connellan, chief executive of Brooks Macdonald, added: ”From the outset of our discussions with Cornelian, we have been struck by the complementary cultures, investment processes and business models of the two firms, with both having a strong focus on clients and intermediaries.

“We are delighted that we have been able to agree a transaction that brings additional multiasset capability and distribution strength into the group. The transaction creates value for our shareholders and crucially will provide benefits for both firms’ clients and the intermediaries with whom we work. The acquisition of Cornelian is a significant step forward in our medium-term strategy of delivering sustainable, value-enhancing growth.”