Tatton Asset Management, the financial advisory business, is to float on London’s Alternative Investment Market (AIM) with an expected valuation of £87m.
Tatton will raise more than £50m via two institutional placings.
The float will see a partial exit for the existing shareholders and provide access to the capital markets to aid future growth. The institutional placings will result in 63.5 per cent of the company shares being held in public hands on admission.
Tatton Asset Management plc will be formally admitted to the London Stock Exchange on 6 July 2017.
Independent investment bank Zeus Capital acted as nominated adviser (NOMAD) and sole broker on the transaction.
Founded in 2007 and based in Wilmslow, the Tatton group operates through three specialist subsidiaries: Paradigm Mortgage Services (PMS), Tatton Capital and Paradigm Partners. The group notched up revenues of £11.9m in the year to 31st March 2017 and an operating profit of £5.5m.
PMS is one of the UK’s leading mortgage distributors, providing mortgage and related support services to a membership of more than 1,000 IFAs. It placed £4.7bn of new business lending in 2016.
Tatton Capital launched its discretionary portfolio management service in early 2013. It has more than £4bn assets under management, growing at an average of more than £80m a month. Paradigm Partners is the group’s independent financial services arm, providing support services, including compliance, to its IFA membership of more than 350.
Founder and CEO of Tatton Paul Hogarth said: “At the centre of our business philosophy has been always to champion the DA IFA sector and provide services that help support them and the needs of their retail clients. We believe that there is a continuing and vital requirement to offer a value for money, low cost service proposition for the mass affluent market place serviced by the IFA sector. As such, the Group represents a new model asset manager that is exploiting such opportunities and challenging the existing off-platform, traditional incumbents whose discretionary fund management services have normally been reserved only for the very wealthy.
“The IPO of the Tatton Asset Management plc marks a very important and exciting milestone in the development of the Group, allowing us to build our market profile further, reward our staff and other stakeholders, and provide access to the capital markets when needed in the future. I look forward to working with our new institutional shareholders in continuing to build our business further.”