Collins Stewart acquires wealth manager Andersen Charnley

Collins Stewart has acquired Surrey-based IFA and private client wealth manager Andersen Charnley for an initial £5m.

The deal, which includes subsidiary Andersen Charnley Investment Management, also includes a deferred consideration of up to £8m in cash and shares to be payable based on Andersen Charnley meeting future revenue targets.

Andersen Charnley Investment Management manages assets of £357m, of which 96% is on a discretionary basis.

Chris Loynes, the founder and principal vendor of Andersen Charnley, has agreed to remain as a consultant to the business for at least two years following completion, while senior management and key staff have signed up to Collins Stewart's employment terms.

Following this acquisition, Collins Stewart's Wealth Management Division will manage and administer £6.8bn of assets, of which over £2.5 billion is discretionary.

"While ACL will provide us with critical mass and resource to our London business, with both the addition of significant discretionary assets under management and a one-off addition of a financial planning capability, Collins Stewart provides ACL with a significant enhancement to its back office, investment and corporate functional capabilities," Collins Stewart's Wealth Management Division head Neil Darke says.

"In addition, this deal takes our assets under management to £6.8bn, further highlighting our commitment to growing the business and achieving our stated goal of £10bn in assets under management by 2012."