Syndicate to sell Guernsey-based investment house

Syndicate Asset Management is selling its Guernsey-based investment manager for about £1.8m to Hume Capital.

The sale follows a strategic review after which Syndicate CI concluded the Channel Islands-based business was non-essential to the group’s activities.

Hume Capital will pay £850,000 in cash for the goodwill of Syndicate CI, a provider of investment funds and the appointed manager of the Zenith funds.

This is a pound-for-pound payment for the net assets of Syndicate at the date of completion, which is expected to be approximately £440,000, and the write-off of existing inter-company loans of roughly £530,000. (article continues below)

Syndicate CI made an operating loss of £384,000 and a reportable loss before tax of £546,000 for the year ended March 31. Revenue for the same period was £2.7m.

Once the deal has been finalised, Hume Capital plans to enhance and develop Syndicate’s current range of funds.