Fund management star returns to fray
SCOTTISH fund management heavyweight Martin Gilbert has returned to the acquisition trail by clinching a deal to buy an Edinburgh-based investments boutique.
The Assetco venture chaired by Mr Gilbert has agreed to buy Saracen Fund Managers for £2.75 million.
Mr Gilbert became a director of Assetco in January, months after retiring from the board of Standard Life Aberdeen.
Standard Life Aberdeen was formed in 2017 through the £11bn merger between Standard Life and the Aberdeen Asset Management business that Mr Gilbert grew into a leading force in the sector, helped by a series of acquisitions.
Mr Gilbert looks keen to follow a similar strategy at Assetco, which said the proposed Saracen deal formed part of a strategy that will involve acquiring and investing in asset and wealth management businesses.
Industry watchers say the fund management sector remains ripe for consolidation. Small players may struggle to compete in an industry in which scale is seen as increasingly important. However, boutiques that offer something different can still prosper.
Assetco noted the potential to grow the Saracen business by enhancing the distribution and appeal of its existing funds and widening the funds it offered.
Founded in the late 1990s, Saracen has around £120m assets under management. It is led by industry veteran Graham Campbell and has four other employees. All five team members are expected to be retained by Assetco if the acquisition completes as expected. The Saracen brand will be retained.
Mr Gilbert became joint chief executive of Standard Life Aberdeen, with Keith Skeoch, after the business was formed.
The group decided to focus on investment management rather than the pensions business that Standard Life made its name in but has suffered funds outflows. It announced last month that it was changing its name to Abrdn, pronounced Aberdeen.
Mr Gilbert told the Financial Times that he had said to Standard Life Aberdeen’s current chief executive Stephen Bird: “You’ve nothing to fear from us.”