Mattioli Woods raises £2m for acquisitions

Wealth manager and SIPP firm Mattioli Woods has exercised its broker option to raise an additional £2m towards its largest planned acquisitions to date. Last week the firm announced its proposed acquisitions of private equity firm and alternative asset manager Maven Capital Partners UK LLP and Financial Planner and wealth manager Ludlow Wealth Management. According to DC Advisory, who advised Ludlow Wealth Management on the sale, the deal for the Financial Planning firm is expected to be worth up to £43.5m. The proposed initial consideration figure is £36.1m followed by up to £7.4m in deferred cash and bonuses. The initial consideration equates to 10.9 times the full year 2020 EBITDA, and represents a 3.3 multiple return for Mobeus since their investment in June 2017. Ludlow Wealth Management is headquartered in Southport, with a network of offices across the North West of England. It has 61 employees and manages over £1.6 bn of assets under advice for over 3,300 clients Mattioli Woods said it would raise £110m from equity fundraising and an additional broker option which was confirmed as being exercised in a market update this morning. A total of 303,030 broker option shares will be issued at 660p per new share, on the same terms as those from the equity fundraising. There are 13,757,512 conditional placing shares and 108,355 primary bid offer shares. Trading is expected to being around 17 June following an application to the London Stock Exchange. The total number of ordinary shares in the company with voting rights is expected to be 45,220,756. Andy Claymore, managing director in financial service at DC Advisory who advised Ludlow Wealth Management’s parent company on the sale, said they are seeing significant ongoing M&A activity for the financial advice sector driven by scale, propositional expansion and technology.

Mattioli Woods raises £2m for acquisitions

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