Martin Gilbert’s new investment vehicle, AssetCo, has reached a £ 2.75million deal for Saracen Fund Managers.
Saracen, based in Edinburgh, was founded in the late 90s and operates three funds; The £ 103million Income & Growth funds, the £ 14million UK Alpha and the £ 2million UK income funds.
Gilbert and his fellow AssetCo director, Peter McKellar, will join Saracen’s board of directors.
Saracen Managing Director Graham Campbell (pictured below) said: “We have known Martin and Peter for some time and are delighted to be working with them to help grow Saracen’s three existing funds and grow the business. overall.
“It is important to note that the philosophy and the investment team will remain the same. We believe our focus on active management and fundamental research with a long-term view is well placed to help investors achieve their financial goals. Our clients support this approach and we are now focused on presenting our funds to a wider range of potential investors. ‘
The company generated revenue of £ 985,364 and a loss of £ 15,146 in the year ended March 31, 2020. It had assets under management of £ 400million. The company’s five full-time employees will sign new contracts upon completion.
The news comes shortly after Gilbert was appointed chairman of AssetCo, the former fire rescue firm that has been restructured to take advantage of buying opportunities in the funds and wealth sectors.
Gilbert, who left Standard Life Aberdeen in 2019, has invested £ 3million in the company to support the restructuring.
It will continue to operate out of Edinburgh under the Saracen brand after the acquisition.
AssetCo sees significant opportunities to improve the distribution and attractiveness of Saracen’s fund lineup, with McKellar describing the company as a “small fund management company with great potential”.
He added: ‘[Saracen’s] the business model, people and product offering are its main strengths and suit AssetCo perfectly.
“Our objective will be to build on the solid foundations of Saracen, in particular the experience and expertise of its management team and their investment approach.
“We aim to grow the business by marketing its existing funds and, over time, expanding its product line to continue to meet customer needs. “
The acquisition marks AssetCo’s first major transaction. He believes more opportunities will emerge given the pressures facing fund and wealth management firms.
“The industry is grappling with multiple structural changes including demographics, cost containment and a greater focus on ESG,” McKellar said.
“These present challenges and opportunities for incumbents and we believe we can leverage them to help unlock value and deliver to customers and investors. “