By Ian McConnell

SVM Asset Management, the Edinburgh investment house founded in 1990 by Colin McLean and Margaret Lawson, is being acquired by the AssetCo business chaired by fellow industry veteran Martin Gilbert for £10.7m.

Mr McLean and Ms Lawson, together with a family trust, are the “significant majority owners” of SVM, AssetCo noted as it announced the deal today.

SVM has around £586 million of assets under management.

It made pre-tax profits of £2m on turnover of £4.3m in the year to December 31, 2021.

Mr McLean, who is managing director and chief investment officer of SVM, will become a director of AssetCo's Scottish business. Ms Lawson, who is UK investment director at SVM, will continue in her role managing UK equity portfolios. Neil Veitch, SVM global and UK investment director, and Hugh Cuthbert, European investment manager at the funds house, will also continue in their roles,

AssetCo noted that all of SVM’s existing 21 employees will continue to be employed by the funds house under its new ownership.

Mr McLean said: “"When I set up SVM our aim was to leverage quality research and strong fundamentals to underpin our independent thinking and deliver great investor value. I believe that our performance over the years demonstrates that we have been able to achieve this. I am pleased that with the backing of AssetCo we will be able to continue to build our focus on, and relationships with, existing clients, creating greater value for them, whilst also broadening our client base and growing assets."

Martin Gilbert, chairman of AssetCo, said: “We are immensely proud to be building an asset management hub in Edinburgh that, over time, will broaden its client base across the UK and beyond. SVM is a well-regarded fund management firm, with a recognised investment style and a very strong investment track record. Its business model, people and product offering are its key assets, and it is core to AssetCo's ambitions."

He added: "I have known Colin and Margaret for over 30 years, and I am delighted that both have agreed to remain with SVM. Both have built phenomenal reputations as investment managers over many decades in the industry. The experience and expertise they will bring to AssetCo will be invaluable. I am also heartened that fund managers of the calibre of Hugh and Neil have committed to the business, as they have important roles to play. We are looking forward to working with the four of them, and the rest of the SVM team, as we develop a business to meet the evolving long-term financial needs of investors."