Rathbones has won the £43m race to buy Jupiter's private client arm and is also to purchase part of Tilney IM"s private client business in a separate £14m deal.
Rathbones said it has raised £24.4m via a share placing to help fund the deals, which will boost its funds under management by 12.7% to £24.8bn on a pro-forma basis. The all-cash deal to buy Jupiter's wealth business will see it pay £43m, assuming all the relevant assets transfer to Rathbones. Depending on AUM at the expected Q3 2014 completion date, however, the final amount could be anywhere between £32m and £54m. As at 31 December 2013, Jupiter's private client AUM totalled roughly £2.2bn. Approximately 30% of the in-scope private client assets are held in Jupiter funds. Som...
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