Premier Miton to acquire Tellworth Investments

investmentweek.co.uk:

Founded in 2017 by Paul Marriage and John Warren, Tellworth offers long/short and long only strategies to wholesale and institutional clients.

In a stock exchange notice today (1 November), the firm said the acquisition is in line with its stated inorganic strategy of buying complementary asset management platforms with industry expertise and product diversification. 

Founded in 2017 by Paul Marriage and John Warren, Tellworth offers long/short and long only strategies to wholesale and institutional clients. As of 30 September, the firm managed £559m in assets. 

Tellworth's core investment team, including co-founders Marriage and Warren, will move over to Premier Miton following the acquisition, which is expected to complete in early 2024, subject to approval by the Financial Conduct Authority.

Tellworth's Seb Jory leaves UK equity fund in co-founder's hands

The initial consideration for the business will be based on AUM at completion, ranging between £3.5m and £6m, in a combination of cash (25%) and Premier Miton shares (75%).

In addition, up to £3m in cash will be paid depending on AUM growth between completion and the first anniversary of the transaction closure. The maximum amount will be paid if AUM at the first anniversary date exceeds £850m. 

The Tellworth business will transition into the Premier Miton platform in the second half of 2024, with the acquisition expected to be earnings enhancing in the first full year of ownership following the transition. 

Tellworth generated a profit before tax, members' remuneration or profit shares of £2.1m in the year to March 2023, and had net assets of £1.1m at 31 March, the firm said. 

Mike O'Shea, chief executive of Premier Miton, said: «We continue to explore inorganic