River and Mercantile eyes float after P-Solve merger

River and Mercantile Asset Management has announced plans to merge with investment consultancy firm P-Solve.

The newly merged businesses will be named River and Mercantile Group. It may also seek to list on the stock exchange.

The current operations of each of the two separate business will be retained as part of the merger.

The group will also look develop new services by combining the current equity management arm of R&M with the asset allocation and derivative businesses at P-Solve.

P-Solve chief executive Mike Faulkner is to take on the role of chief executive at the merged firm.

R&M chief executive officer James Barham will continue to head up the group’s equity management business while also taking on a new position as head of distribution.

A statement from River and Mercantile and P-Solve also details that following the completion of the merger, the new group may “also explore the possibility of an IPO to raise capital for further investment in its growth strategy”,

Faulkner says: “This takes us forward significantly in our ability to continue enhancing the level of service we provide to our clients. This is both in terms of the expanded flexibility it will give us in developing investment solutions, and the depth of investment thinking that will exist in the combined business.”

Barham adds: “This merger ensures that we are true to our founding principles, aims and objectives. This will accelerate our plans to develop a broad-based, diversified business where investment sits at the heart of our firm.”