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AssetCo purchases 30% stake in Parmenion

AssetCo has purchased a 30 per cent equity stake in Bristol-based Parmenion Capital Partners. This comes in the wake of the completion of the sale of Parmenion by previous proprietors Abrdn (formerly Standard Life Aberdeen). Preservation Capital acquired Parmenion back in March. 

AssetCo is run by previous Abrdn joint CEO Martin Gilbert. The firm will pay £27.8m in cash for the stake. The deal is structured so that there is a payment of £20.6m due on completion. Following this, one half of the balance will be paid in March 2022, and the other half in March 2023. 

Peter McKellar, Deputy Chairman and CEO of AssetCo, commented: 

“Parmenion is a market leading investment and advisory platform. The business has a great opportunity to build on its strong IT and client focused foundations. Especially given the digital transformation we are seeing within the asset and wealth management industry. The company has the people and expertise to grow and to continue to deliver for advisers and customers.

“Our strategy is to position AssetCo to take advantage of the structural shifts taking place within the asset and wealth management industry, such as the increasing use of technology to help individual investors and their advisers. We intend that this will be achieved through the acquisition, primarily, of majority stakes in selected businesses which play into these structural shifts and supported by strong distribution to drive organic growth. Few businesses will divert us from this approach. However, we were compelled by Parmenion’s market positioning, strong growth potential and excellent management team. So on this occasion we are delighted to have secured a significant minority interest in conjunction with Preservation Capital Partners. We are looking forward to working with Preservation Capital Partners and the Parmenion team in building the business.”

An announcement on Parmenion’s website stated:

“Let the Independence Day celebrations begin! It may be 1st July rather than 4th, but today’s the day that Standard Life Aberdeen’s sale of Parmenion completes. We become an independent business supported by our new investors, Preservation Capital Partners and (hot off the press), Martin Gilbert’s AssetCo.”
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