Tilney, the asset management company focused on high net worth private clients and with funds under management of over £5 billion, has been acquired by Bridgepoint for an undisclosed sum.
Tilney is the fourth largest independent provider of wealth management services in the UK and has a strong regional focus through a network of offices in Liverpool, London, Edinburgh, Glasgow, Birmingham, Shrewsbury, Sandhurst and Leeds.
Its primary service offering is a sophisticated asset management service using multiple asset classes including equity, fixed interest, commercial property and hedge funds. It is a market leader in the application of its service to the rapidly developing Self Invested Personal Pension (SIPP) market.
Founded in Liverpool in 1836, Tilney has been transformed in the past four years having made a number of strategic acquisitions as part of a product diversification strategy: Opal, a Monaco-based fund of hedge funds manager (2002), the Pensions Partnership, a pensions consultant (2003), the private client divisions of Edinburgh Fund Managers and SG Hambros (2003) and Cardales, a specialist commercial property fund manager and service provider (2004).
According to Mike Black, partner at Bridgepoint in London, compared to its peer group, Tilney has a strong brand and a well-diversified asset management offering.
"The high net worth private client market is set to grow at 6% per annum and Tilney is firmly positioned in the fastest growing part of that market. It also benefits from a strong management team with a track record of building the business by acquisition. This is important given that its marketplace remains fragmented and we will work with Tilney in pursuing an acquisition strategy" he said.
Tilney CEO David Campbell said: "I am delighted to be working with Bridgepoint, which enables us to continue both an organic and acquisitive growth strategy. I believe the company's propositions, both service and product, together with our new ownership structure, gives Tilney the perfect opportunity to be a dominant player in the high net worth investment market.
"Our commitment to product and service innovation has given clients great opportunities for portfolio diversification and to benefit from the company's broadening investment expertise. I am confident that the Tilney team has the right mix of skill, vision, expertise and determination to deliver on our strategy."
The transaction is subject to regulatory approval from the FSA.
Advisers involved in the transaction included: for Bridgepoint - Citigroup (corporate finance), Mercer Oliver Wyman (due diligence), Travers Smith (legal), PWC (financial accounting); for management - Livingstone Guarantee (corporate finance), Pinsents (legal) and Olswang (legal); for the vendor - Mayer Brown Rowe & Maw LLP (legal).
Bank of Scotland, which provided debt for the transaction, was advised by Ashurst (legal).
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