Financial services-focused US private equity firm Lovell Minnick Partners (LMP) is to acquire a majority stake in London-based wealth manager London & Capital.
London & Capital is a London-based wealth and asset manager with £4.1 billion in assets under management.
LMP says that London & Capital’s management team will continue to lead the business and will retain a “significant minority stake”. The cost of the acquisition has not been disclosed.
London & Capital (L&C) was set up 30 years ago at the time of ‘Big Bang’ in the City. It works mainly with domestic and international HNW and UHNW individuals, many with US connections. It also works with institutions.
L&C has offices in London, Barbados and Barcelona and extended services into Europe to support clients post-Brexit. It serves over 800 private and institutional clients and has 120 employees, of whom more than 50 are investment professionals and financial advisers working directly with clients.
London & Capital is regulated in the UK (FCA), the US (SEC) and the EU (CNMV).
PMQ has major stakes in many global financial services firms including fund manager Matthews Asia, Fortis and insurance broker Charles Taylor.
Guy McGlashan, chief executive at London & Capital, said: “We chose to partner with LMP because of the firm’s excellent track record of working with management teams to scale and enhance wealth and asset management firms. Their deep experience in the space and our sense of shared values and culture align with our focus on providing an exceptional service and experience for our clients.”
“We are at an exciting point in our evolution as a firm, and attracting the private investment plus the operational support LMP offers, will allow us to expand our client solutions, grow internationally, invest in technology, and bring on new teams. We look forward to working closely with the LMP team.”
Spencer Hoffman, partner at LMP, said: “London & Capital’s long-standing success and stability is a testament to their comprehensive and client-centric approach to wealth and asset management. Their excellent client relationships, strong culture and talented teams position them very well for organic and inorganic growth in what are largely fragmented markets both locally and internationally.”
Elaine Freedman, wife of the late founder of London & Capital, Daniel Freedman, said: “Daniel would have been very pleased to see the continued success of the business as it moves into this new phase. We are delighted with the new partnership with LMP and wish them and the management team every success in the future.”
The deal is expected to be finalised in the fourth quarter of 2022, subject to customary regulatory reviews and approvals. Raymond James Financial International Limited served as financial adviser to LMP and Spencer House Partners served as financial adviser to London & Capital. Proskauer Rose LLP served as legal counsel to LMP and Charles Russell Speechlys served as legal counsel to London & Capital. Wallace LLP and Cavendish Corporate Finance LLP served as legal and financial advisers respectively to the Freedman family.
