Wilmslow-based Tatton Asset Management to raise £50m in IPO

Tatton Asset Management, the financial advisory business, has this morning (June 22) announced its intention to float on London’s Alternative Investment Market (AIM).

The deal, expected to value the firm at £87m, was brokered by Manchester-based independent investment bank Zeus Capital, which also acted as nominated adviser (NOMAD).

Wilmslow-based Tatton is looking to raise over £50m from two institutional placings.

The company was established in 2007 and employs more than 4,000 advisers. In the year ending March 31 2017, the firm achieved an operating profit of £5.5m against revenues of £11.9m.

The deal will mark a partial exit for the existing shareholders, with the institutional placings to result in 63.5% of the firm’s shares being held in public hands.

Tatton Asset Management was advised on the transaction by a team from Zeus Capital comprising corporate finance directors Dan Bate and Pippa Underwood, co-heads of financial institutions Martin Green and Mike Cuthbert, and chief exec John Goold.

Dan Bate said: “Through its three specialist advisory businesses, Tatton Asset Management has demonstrated the ability to achieve strong and consistent levels of growth, cornering a strong market share in all three divisions.

“This performance, as well as its low capital requirements, means it represents an attractive option to investors, who always value reliable and sustainable business models.”

He added: “We look forward to continuing our work with the existing shareholders as Tatton begins its life as a public company.”

Tatton Asset Management plc will be formally admitted to AIM on July 6.

Paul Hogarth, Tatton’s founder and CEO, commented: “At the centre of our business philosophy has been always to champion the DA IFA sector and provide services that help support them and the needs of their retail clients.

“We believe that there is a continuing and vital requirement to offer a value for money, low cost service proposition for the mass affluent market place serviced by the IFA sector.”

He continued: “As such, the group represents a new model asset manager that is exploiting such opportunities and challenging the existing off-platform, traditional incumbents whose discretionary fund management services have normally been reserved only for the very wealthy.”

Speaking further, Paul said the IPO represents “a very important and exciting milestone in the development of the group”, as it will allow the firm “to build our market profile further, reward our staff and other stakeholders, and provide access to the capital markets when needed in the future”.

He added: “I look forward to working with our new institutional shareholders in continuing to build our business further.”

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