Travers Smith LLP has advised AIM-listed Brooks Macdonald Group plc (Brooks Macdonald) on its £39 million acquisition of wealth manager, Cornelian Asset Managers (Cornelian).
The initial consideration is £31 million, of which £22 million will be paid in cash and £9 million in Brooks Macdonald shares. A further contingent cash consideration of up to £8 million is payable depending upon Cornelian meeting certain pre-agreed performance targets. The cash element will be funded by way of an equity placing expected to raise £30 million.
Brooks Macdonald provides leading investment management services to private high net worth individuals, pension funds, institutions, and trusts in the UK and internationally. Cornelian is an independent, well-established wealth manager based in Edinburgh with funds under management of £1.4 billion.
The Travers Smith team was led by Corporate Partner Jon Reddington, with support from Corporate Senior Associate James Addison. Specialist support was provided by Tax Partner Madeline Gowlett.
Jon Reddington commented "We are delighted to support Brooks Macdonald as it takes this step forward to deliver sustainable value-enhancing growth. Our long history of acting for listed corporates and extensive experience in the financial services sector means that Travers Smith is perfectly positioned to advise on this transaction."
The acquisition remains subject to regulatory approval and is due to complete in Q1 2020.
N. M. Rothschild & Sons Limited (Rothschild & Co) are the financial advisers to Brooks Macdonald.