SHARES in AssetCo, Martin Gilbert’s expanding fund management company, leapt nearly 14 per cent this morning as it emerged it could be in line for a windfall worth tens of millions of pounds.
AssetCo has a 30 per cent stake in Parmenion Capital Partners, the investment and advisory platform, which was last night linked with a sale that would value the company at between £300m and £400m.
Reports have suggested that shareholders in Parmenion are exploring the sale of a “significant stake” in the business. It follows the disposal of Paremnion by abrdn, the Edinburgh-based investment giant, to Preservation Capital Partners, a European private equity firm, in a deal worth up to £102m in March 2021.
AssetCo acquired a 30% equity interest in Parmenion from Preservation in July 2021 in a cash deal worth up to £27.8m.
AssetCo, which has taken over a raft of Scottish fund management houses in recent months, told the stock market this morning: “AssetCo notes the recent press commentary and market speculation regarding Parmenion.
“Parmenion's Board regularly explores options to accelerate the development of the business and maximise its growth potential and value to shareholders. AssetCo is supportive of such discussions and we remain delighted with Parmenion's progress to date."
Abrdn said it sold the business to simplify its adviser operations around its core Wrap and Elevate propositions.
Parmenion was founded in 2007 as an investment and technology solutions business that supports financial advice firms, and has around £9bn of assets under management.
Shares in AssetCo were trading at 71.05p at midday, up 8.55p, up 13.68%.
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