AssetCo’s profit more than quadrupled from £3.4m to £16.1m in 2021 during which it acquired a stake in three businesses – including thematic specialist Rize ETF – with a fourth in the pipeline.
Furthermore, the firm’s capital position grew from £32.3m to £56.1m, which considers a £27m tender offer to shareholders, giving the group room for further acquisitions.
Capital and profits were boosted after Grant Thronton agreed to settle a legal case for £30.5m.
Campbell Fleming, CEO of AssetCo said he was “immensely proud” of the results in which the firm grew its assets under management (AUM) from zero to £9.6bn through the additional purchases of Parmenion and Saracen Fund Managers.
The also group acquired River and Mercantile Group (RMG) last month in a £100m deal. Following the purchase, RMG said it was eyeing up the transfer of some of its strategies into ETFs to broaden both investor appeal and product distribution.
The deal will see AssetCo’s AUM grow to £12bn on completion.
The consolidation vehicle purchased a majority stake in thematic ETF specialist Rize ETF last July, shortly after it took a 30% stake in wealth manager Parmenion in the same month.
In a statement, Martin Gilbert chairman of AssetCo, said: “The intention is that, over time, the company develops between five to seven distinct and different asset management and wealth capabilities in some of the fastest-growing or under-valued areas within the sector.
“The expectation is that in addition to building these verticals, there will also be significant opportunities for the capabilities to work together and deliver further growth.”
Fleming added: “The asset and wealth management industry is going through a period of significant change including technological advances, evolving investor needs and habits.
“To address these structural shifts the businesses we have invested in encompass four key areas – active management in both public and private markets, high growth thematic investing, ESG and digital solutions.”
Following the investment from AssetCo, Rize ETF has expanded its product range to six ETFs with $500m assets under management (AUM) as it continues to expand the business.