Tavistock Investments’ has set a date for its General Meeting at which its shareholders will vote on the proposed sale of its multi-asset management arm, Tavistock Wealth Limited to Titan Wealth Holdings.

The company’s shareholders will vote on the proposed deal at 10am on 23 July at its office in Bracknell.

In the call for a General Meeting issued by the firm this morning, Tavistock chairman Oliver Cooke said the partnership will enable Tavistock to accelerate the growth of its wealth management business both organically and through an acquisition programme.

The firms have exchanged a contract transferring the ownership of Tavistock Wealth Limited to Titan Wealth Holdings dependent on approval from the Financial Conduct Authority and formal approval from Tavistock’s shareholders.

Last week Tavistock Investments announced it was entering into a 10-year ‘strategic partnership’ with Titan Wealth Holdings. As part of the deal Titan will acquire Tavistock Wealth Limited, Tavistock’s multi-asset manager, which has £1bn in funds under management. 

Titan Wealth is a new investment firm co-founded recently by Andrew Fearon, a key figure at rapidly growing Financial Planning group Independent Wealth Planners (IWP).

Mr Fearon is a founder shareholder and director of IWP where he is responsible for M&A.

Earlier this year Tavistock rejected an ‘unwelcome’ takeover bid from Jersey-based investment firm called TEAM, which was believed to have some backing from ex-employees.

Tavistock Investments group includes an advisory network, mostly focused on Financial Planning, a Centralised Investment Proposition and a small Direct to Consumer arm which uses an app.

Under the terms of the Tavistock deal, Tavistock will act as Titan’s “retail distribution partner.” Tavistock says it hopes the partnership will enable it to expand its wealth management faster, both organically and through acquisitions.

Titan will acquire Tavistock Wealth for up to £40m (equivalent to 6.58p per Tavistock share) to be paid in cash, together with a 10-year earn-out. Some £20m will be paid on completion, with a further £20m paid in equal annual instalments over the following 3 years, linked to the maintenance of Tavistock Wealth's revenues.

Today’s call for a General Meeting added that whilst becoming part of Titan, John Leiper, Tavistock's chief investment officer, and his investment team will continue to work closely with Tavistock and its advisers under the strategic partnership deal.

Under the strategic partnership, Tavistock will also receive additional payments over a 10-year period equivalent in value to 50% of future net income on any increased funds under management within Tavistock Wealth’s Acumen UCITS funds.

A new company within the Tavistock Investments Group, Tavistock Asset Management, (TAM) will continue to market the group’s centralised investment proposition which will include both the Acumen UCITS funds and the company’s Model Portfolio Service. TAM will retain Titan as investment manager for the MPS.