The Press and Journal (Inverness, Highlands, and Islands)
Gilbert acquires Parmenion stake
AssetCo, the new asset management vehicle of northeast financial services entrepreneur Martin Gilbert, has struck a £27.8 million deal to acquire 30% of Parmenion Capital Partners.
Parmenion – founded in 2007 – is a business-tobusiness fund investment and advisory technology platform for the wealth and independent financial adviser (IFA) sector, used by around 1,100 adviser firms and 2,600 IFAs.
It is a former subsidiary of Aberdeen Asset Management (AAM), which Mr Gilbert co-founded and led as chief executive.
AAM acquired Parmenion in January 2016 but in March 2021, nearly four years after the £3.8 billion takeover of AAM by Edinburgh-based Standard Life, the business was sold to funds managed by Preservation Capital Partners in a deal worth up to £102m.
Parmenion now employs 211 people and manages about £9bn of assets under management (Aum). The Bristol-headquartered business has delivered strong Aum growth in recent years, with net inflow growing by around 26% annually since 2015.
For the financial year ended December 31 2020, the firm reported revenue of £29.8m and operating profits of £1m before certain one-offs. At yearend, Parmenion had net assets of £10.8m and £15.9m of cash on the balance sheet.
AssetCo is paying £27.8m in cash for Parmenion, plus £20.6m on completion of the deal and up to £3.6m due in each of March 2022 and March 2023.
The acquisition is conditional on approval by the Financial Conduct Authority but expected to complete by the end of September.
Gordon Neilly, an adviser to AssetCo and former global head of strategy and corporate development at
Standard Life Aberdeen (SLA) will then join the board of Parmenion.
AssetCo said Parmenion’s success was driven by its proprietary technology and strong customer service, offering “significant” opportunities to develop the business further.
Peter McKellar, chief executive and deputy chairman, AssetCo, added: “Parmenion is a marketleading investment and advisory platform.
“The business has a great opportunity to build on its strong IT and clientfocused foundations, given the digital transformation we are seeing within the asset and wealth management industry.
“The company has the people and expertise to grow, and to continue to deliver for advisers and customers, as they seek to achieve their long-term investment objectives.”
AssetCo is focused on taking advantage of “structural shifts” within the asset and wealth management industry, such as the increasing use of technology to help individual investors and their advisers.
He said: “Few businesses will divert us from this approach, but we were compelled by Parmenion’s market positioning, strong growth potential and excellent management team – and on this occasion we are delighted to have secured a significant minority interest in conjunction with Preservation Capital Partners.”
Mr Gilbert, who quit SLA last year after spells as cochief executive and vicechairman, owns a near-10% stake in Monmouth shire based Asset Co as part of a consortium’s 29.8% investment.
Consortium partners also include Mr McKellar – a former global head of private markets at SLA subsidiary Aberdeen Standard Investments – and ToscaFund Asset Management, where Mr Gilbert is chairman.