Wealth management firm expands offshore with Jersey acquisition

WEALTH management firm Brooks Macdonald Group, which has an operation in York, has bought Jersey-based DPZ Capital for an initial sum of £5.7m. 

AIM-listed Brooks Macdonald said the acquisition total will be made up of £3m in cash and the issue of new ordinary shares in the group at a value of £2.7m. The total consideration payable will not exceed £13m, which includes c.£1m of net current assets.

Brooks Macdonald said the deal will enhance its international and offshore offering and it expects it to be earnings enhancing in the full year to June 2015.

The deal increase its pro forma discretionary funds under management by £360m to £6.04bn.

DPZ is a wealth management business founded in 2007.

It manages a range of distinct investment strategies founded on its core competencies: asset allocation, manager selection, fixed interest and credit investing, and equity selection.

Funds under management since DPZ’s inception have grown rapidly and, as at 31 March 2014, DPZ had c.£430m of funds, c.£360m of which is managed on a discretionary basis, c.£60m of which is managed on an advisory basis and c.£10m is managed on an execution only basis

Chris Macdonald, chief executive of Brooks Macdonald Group, said: “This is a very exciting acquisition for the group in line with our strategy to expand our international division based in Jersey.

“DPZ is a high quality asset management business that has strong investment management and cultural synergies with the group.”