AssetCo to buy asset manager SVM for £10.7m

AIM-listed asset and wealth management company AssetCo said on Tuesday that it had agreed to buy Edinburgh-based asset manager SVM for around £10.7m.

Founded in 1990 by Colin McLean and Margaret Lawson, SVM currently has around £586m of assets under management, including five open-end funds: UK Growth, UK Opportunities, Continental Europe, All Europe SRI and World Equity. It also manages SVM UK Emerging Fund, a £6.8m investment trust listed on the London Stock Exchange.

In the year to the end of December 2021, the business generated turnover of £4.3m and a pre-tax profit of £2m.

"AssetCo believes that, given the strong investment performance delivered by SVM's fund managers, there are significant opportunities to enhance the distribution and marketing of SVM's existing funds and, over time, to broaden the product offering," it said.

"The SVM funds will also complement the existing listed equity fund strategies offered by AssetCo's various businesses, most notably those offered by River and Mercantile Asset Management."

Following completion of the deal, AssetCo will have about £3.5bn of AuM in listed equity fund strategies across its various businesses.