Rathbones buys Taylor Young IM and sets out £24m acquisition growth plans

Rathbone Brothers plans to raise £24.2m through an institutional share placement as part of plans to grow the business through acquisitions.

The private bank and investment group also announced the acquisition, which could rise to £15m, of private client business Taylor Young Investment Management. It is not subject to the share placing.

The private client investment management business, which has funds under management of £337m, has been acquired by subsidiary Rathbone Investment Management.

The acquisition will see Taylor Young’s investment management team, led by Peter Thomson, join Rathbones and will raise Rathbones funds under management by 2 per cent to £17.7bn.

Rathbone Brothers chief executive Andy Pomfret says: “We expect to see more acquisition opportunities in the private client industry in the next few years.

“Raising capital now will give us the flexibility to take advantage of these opportunities as they arise and help us provide more fully-secured loans to our clients.”

The issuance of 2 million shares will represent approximately 4.3 per cent of its £559, market capitalisation. The fundraising will also be used to provide loans for existing clients.