AssetCo-owned River and Mercantile Asset Management is set to enter ETFs on Ark Invest’s platform after the latter’s acquisition of Rize ETF.
As part of the deal, Cathie Wood's ARK and Asset Co will partner on the launch of “several” River and Mercantile ETF products on the ARK Invest Europe platform.
ARK Invest Europe will be the hub for the firm’s expansion into continental Europe, the UK and new markets globally.
Asset Co – which sold Rize ETF to ARK Invest – acquired River and Mercantile Group for £100m in January 2022.
Following the deal, Martin Gilbert, executive chair of Asset Co, said there was “material value” in leveraging other parts of the AssetCo, stating it could move some River and Mercantile strategies to ETFs.
Commenting following the sale of Rize ETF, Gilbert (pictured) said: “ARK is a committed and highly successful ETF player based in the US and we are extremely pleased to have reached an agreement that maintains our interest in the growth of their business for a period and also to partner with them to launch our own ETF products, managed by River and Mercantile Asset Management.”
River and Mercantile Group currently houses 12 active mutual funds with £1.3bn assets under management.
Asset Co acquired a 63% stake in Rize ETF in July 2021 for £16.5m.
The group wrote down the value of Rize ETF in June by roughly £5m after stating the business was “materially behind plan”.