Tatton Asset Management has announced the acquisition of £650m Verbatim funds and a strategic distribution with fintech and support service provider Fintel.
Tatton will pay a cash consideration of up to £5.8m for Verbatim's multi-asset and multi-index funds. £2.8m has been paid in cash on completion with the remainder being subject to certain performance conditions over the next four years.
AUM at 15 June was £9.5bn, the acquisition will increase its AUM to £10.2bn.
Paul Hogarth, chief executive officer of Tatton, said: "The transaction clearly demonstrates the progress we are making in executing on our growth strategy. We have set out a roadmap for growth over the next three years, growing our AUM organically and by acquisition and extending our reach to the IFA community, the lifeblood of our industry, through strategic partnerships.
"This transaction is evidence of that strategy in action and it enhances our proposition to IFAs and their clients further, with the multi-index and multi-asset funds complementing and extending our current fund range."
Meanwhile the strategic distribution deal wiht Fintel has been signed for five years and provides Tatton with access to 3,800 new financial intermediary firms and 6,000 Defaqto users.
"We are excited to be working more closely with Fintel plc, a business we have known and respected for a very long time," said Hogarth. "I have no doubt that this is a fantastic opportunity for both businesses to continue to deliver against their strategic objectives, while delivering real shareholder value."
Over the remainder of Tatton's financial year, which ends 31 March 2022, the partnership, including the Verbatim funds, is expected to generate adjusted operating profit of c.£0.6m, with adjusted operating profit of c.£1.5m expected the following financial year.