Mattioli Woods acquires asset manager

Mattioli Woods has bought a 49 per cent stake in Amati Global Investors for £3.33m with an option agreement to buy the remaining stake, the wealth manager’s interim results revealed today.

A specialist in small and mid-cap companies, Amati, founded in 2010 by Paul Jourdan and Douglas Lawson, has £120m assets under management. Its products include the Amati UK Smaller Companies Fund, as well as several VCT funds and an AIM IHT portfolio service.

In 2016 the business produced profits of £490,000 on revenues of £1.8m.

The option agreement would allow Mattioli to acquire the remaining 51 per cent of the business from Amati Global Investors in the two years commencing 6 February 2019 for a mixture of cash and ordinary shares.

Ian Mattioli, chief executive of Mattioli Woods, says the acquisition will “significantly enhance” the group’s fund management expertise as the firm continues to expand its operations.

“There are few specialist UK fund managers with such a long and stable heritage, utilising the combined experience of an investment team with over 50 years’ knowledge of UK smaller companies.”

Amati’s chief executive Paul Jourdan says the transaction had been a year in the making and says the businesses share similar values and business culture. The deal means the asset manager can take its specialist investment products to a much wider audience, Jourdan says.

‘Acquisitions continue to be a core part of our growth strategy’

Chief executive Ian Mattioli says total client assets under management, administration and advice increased to over £7.5bn at the end of the six-month period covered it today’s results.

Discretionary assets under management increased by 17.1 per cent to £1.4bn.

“Acquisitions continue to be a core part of our growth strategy,” Mattioli says, noting that the company acquired pension trustee and administration services business MC Trustees in September.

The board has recommended a 22.1 per cent increase in the interim dividend to 4.7p per share. 

Mattioli says the company continues to broaden its proposition through product development and by acquisition.

“We believe our vertically-integrated models for wealth management and employee benefits, blending our capabilities as trusted adviser, administrator, product provider and asset manager, allow us to deliver improved and sustainable client outcomes, which will enable the group to secure further profitable growth.”